Canopy, Acreage shareholders vote, Springfield selects, OK inspects & more

Here are some notable stories and events to watch for in the coming days:

DAY OF DECISION: Shareholders of Canopy Growth and Acreage Holdings are scheduled to vote Wednesday on the much-heralded megamerger of the two companies. If consummated, it would become the first major Canadian/U.S. cannabis transaction.

Each company’s shareholders will vote separately. At least 66% approval from shareholders of both companies is needed for the deal to close, according to Yahoo Finance.

Canopy, Canada’s largest cannabis company, and Acreage, the largest multistate marijuana operator in the U.S., reached a deal in April that gives Canopy the right to acquire all of Acreage’s shares when MJ production and sales become legal at the federal level in the United States.

Under the terms of the agreement, Acreage would receive an immediate payment of $300 million.

In addition, if exercised, holders of Acreage’s subordinate voting shares will receive 0.5818 per Canopy common share – valuing the deal at $3.4 billion, which would make it the richest M&A transaction in the cannabis industry.

Acreage also would gain access to Canopy brands such as Tweed and Tokyo Smoke, plus other intellectual property.

MORE CANOPY: On Thursday, the day after the shareholder vote, Canopy Growth is scheduled to release its financial results for the fourth quarter and fiscal year 2019.

The company reported net income of 74.9 million Canadian dollars ($55.7 million) in the third quarter, with international revenue climbing to CA$8.2 million ($6.1 million) in the nine months ended Dec. 31 – a nearly sixfold increase over the same period in the preceding year.

AND THE WINNERS ARE … : Monday is the day the city of Springfield, Massachusetts, is expected to choose up to four companies it believes are best qualified to operate recreational marijuana facilities within its borders.

Eighteen companies and vendors submitted formal proposals to open facilities in the city, MassLive.com reported.

Officials ranked proposals based on factors such as project design, location, public health and safety as well as diversity plans.

MassLive.com also noted that companies picked during this initial phase will be the first to negotiate host community agreements with the city.

FOR PUBLIC CONSUMPTION: The Alaska Marijuana Control Board is seeking public comment by Wednesday on proposed changes to the state’s rules for on-site cannabis consumption spaces and the testing and tracking of marijuana.

Among other changes, regulators recommend:

• Allowing retail stores not in freestanding buildings to have on-site consumption of edibles only.
• Increasing the cost of the license fee for marijuana testing facilities.
• Requiring a testing laboratory to submit changes to standard operating procedures to regulators for review and approval.
• Changing requirements for marijuana that has failed testing as well as standards for cultivation and preparation of marijuana samples for testing.

ON ALERT: Existing businesses in Oklahoma that manufacture or sell food products infused with or containing CBD are now subject to inspections, according to the state health department.

According to Oklahoma City TV station KFOR, health department officials say the grace period has passed for businesses to obtain food licenses.

Compliance checks for dispensaries and processors as well as routine inspections of processors are now in effect, officials said.

Products that are considered food under Oklahoma law include but are not limited to:

• Flavored tinctures or oils placed in the mouth or in other food.
• Assorted types of baked goods, candies or chewing gum.
• Infused honey.
• Infused bottled water.
• Other prepackaged food products.

EXPIRING LICENSE SCORECARD: There are 16 cultivation licenses set to expire this week in California, according to an analysis of state license data by MJBizDaily.