Canopy Growth to Acquire Top Edibles Brand Wana Brands When U.S Legalizes Cannabis

Wana Brands sells to Canopy

A Canadian cannabis company is about to win big after the U.S legalizes cannabis federally which many believe is only a matter of time. This expected win for Canopy Growth is because of the agreement the company has with Wana Brands which is the number one cannabis edibles brand in North America. It is not farfetched why Canopy Growth sought to make this move at this point given the surge in sales of cannabis edibles in different parts of the continent. Read on as we take a closer look into the peculiarities of the agreement, what it means for the parties involved, and its impact on the cannabis industry.

Wana Brands

For those that are well versed with the cannabis industry in the U.S, the name Wana Brands is sure to be familiar. The unique company with its central hub situated in the state of Colorado produces and sells edibles in the state and different other states across the country. The brand also has different licensed partners across the country in states like Arizona, California, Michigan, Florida, and Illinois. The brand circumvents 12 states in the US and across Canada where its licensed partners manufacture, distribute, and sell Wana-branded edibles.

With such a strong reach across the cannabis industry, Wana Brand doesn’t just wish to just sit back which is probably why the agreement with Canopy Growth came to life. The brand hopes to have license agreements for more than 20 states in the use of recreational cannabis markets and expects a full legalized cannabis market federally in the not-so-distant future. These achievements and goals of Wana Brands are what sets it apart as the number one edibles brand in North America.

Canopy Growth

The Canadian company is a top cannabis company that deals with diverse cannabis and cannabinoid-based products. The products available within the structure of the cannabis company include infused beverages, edibles, flower oils, topicals, and soft gel capsules. The company is also a market leader in Germany where it strives to improve lives and help people to harness and utilize the potentials and benefits of the natural herb. The company is largely focused on health and wellness and this has helped to increase its consumer base especially patients under medical marijuana programs.

Canopy Growth and Wana Brands

The agreement between Canadian giants Canopy Growth and Wana Brands is reportedly set to cost Canopy Growth 297.5 million dollars if the company aims to acquire all subsidiaries of the Wana entity. This includes Wana Wellness, Mountain High Products, and the Cima Group. The acquisition will require Canopy Growth to pay 15 percent of the fair market value of these entities under Wana Brands. However, for now, the agreement is still only in principle as all these entities continue to operate independently.

The heads of both companies have been very vocal about the recent agreement with both speaking to Forbes on the need for the agreement and how it favors all involved. While speaking with Forbes, David Klein, CEO of Canopy Growth explained that the acquisition will help expose the company to the cannabis edibles market in the U.S and Canada. This is pivotal because the edibles sector of the cannabis industry is presently regarded as the fastest-growing market segment of the industry. Therefore, purchasing Wana and its subsidiaries will make Canopy Growth the leading force to reckon with in the edibles sector of cannabis products.

Nancy Whiteman, CEO of Wana Brands also spoke to Forbes where she explained that despite the fact that Wana Brands has done very well for itself on its own, the company always knew there will be a time for such an agreement. This is because though Wana Brands became the leading edibles brand in North America on its own if it is going to reach desired peaks in such a competitive environment, much more is needed. This will be in the area of finances as well as the need for an experience that is only available outside the industry. The Co-founder of Wana Brands also went to appraise the partners and employees of Wana Brands who have always shown unwavering commitment to give the best service to customers. She also lauded Canopy Growth by stating that Wana Brands has met with different possible partners and investors in the past 11 years but none fit perfectly like Canopy. The company provides Wana with all that it needs for both to rise to unprecedented heights in the cannabis industry.

Strategic benefits of the acquisition

The new agreement by both companies offers a wide range of strategic benefits to all involved. It is set to help Wana cement its leadership at the top of edibles brands in the US. Likewise, it will help Canopy to improve the reach of its products while exposing it to the ripe US market once legalization is finalized. A leadership position in the gummies category is important because edibles are the primary point of entry of new consumers which means they can only go from strength to strength. The acquisition also helps to make scaling up the Wana Brand easier using its unique licensing model which leveraging on the diversified product portfolio of Canopy Growth.

Being a Canadian company, the acquisition of Wana Brand is sure to help open up Canopy Growth to the ever-increasing U.S ecosystem. It will also automatically possess the leadership position of Wana Brands across the U.S and Canadian markets making it a strong force to be reckoned with in the industry. This and many more are the strategic benefits available to both companies following the completion of the acquisition.

Bottom line

The legalization of cannabis federally in the U.S is just a matter of time and that is all that is required to push the full completion of this agreement. Once all is completed, you can be sure that all the strategic benefits outlined as positives of this acquisition will begin to take place setting Canopy Growth where they belong at the top of the industry.