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Canopy eyes U.S. expansion with weed gummies maker Wana Brands’ acquisition By Reuters

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© Reuters. FILEPHOTO: This sign, featuring the Canopy Growth Corporation logo, is shown at Smiths Falls (Ontario, Canada), January 4, 2018. REUTERS/Chris Wattie

Canada. (Reuters). Canopy Growth (NASDAQ:) Corp announced Thursday that it will buy Wana Brands, a maker of weed gummies. This is as Wana Brands, the largest pot producer in the world looks to grow its presence on the U.S. market.

Canadian marijuana producers have begun to look at expanding cross-border, after the sector has been attracting investor attention from some U.S. states that legalize pot as well as increased expectations regarding federal cannabis reform.

As people who are unable to leave their homes due to the crisis have turned towards cannabis-related products like gummies, there has been an increase in demand for pot edibles.

Wana is a seller of gummies within the U.S. State of Colorado. It licenses its intellectual properties to other partners that manufacture, distribute, and sell Wana-branded Gummies throughout California, Arizona and Illinois.

Canopy will have access to Wana’s Colorado vertically integrated facility and licensing division. The company stated that the acquisition would allow Canopy continued independent operations in Colorado until the deal is closed.

According to the statement, Canopy Growth stated that the transaction was structured in three different option agreements which allow Canopy Growth the option of acquiring 100% of each Wana entity’s membership interest.

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