Acreage Holdings Details Upcoming Acquisition by Canopy USA

Acreage Holdings, a U.S. multi-state cannabis operator, announced that Canopy USA plans to complete its acquisition of Acreage by mid-December 2024. As a result of a previous dilution from a June 2024 offering, the exchange ratio for Acreage's Class E subordinate voting shares (Fixed Shares) is expected to decrease significantly, potentially resulting in zero value for current holders upon acquisition closure.

Acreage holds agreements with Canopy to acquire both its Fixed and Class D subordinate voting shares (Floating Shares). The acquisition will be finalized after satisfaction of necessary conditions, including regulatory approvals.

Holders of Fixed Shares are expected not to receive any Canopy shares unless the share price exceeds US$5.00. Floating Shareholders will receive 0.045 of a Canopy share per share owned. Shareholders must follow transmittal instructions to exchange their shares. The transaction's completion remains subject to conditions and share price fluctuations.