Canada’s Canopy Development is close to a deal to obtain New York-primarily based marijuana multistate operator Acreage Holdings, numerous sources, including CNBC and Bloomberg, reported Wednesday.

If correct, it would be the 1st cross-border deal involving a Canadian marijuana licensed business shopping for a non- hemp U.S. multistate operator.

It is not clear presently how the Canadian business could obtain a U.S.-primarily based firm and nonetheless preserve its New York Stock Exchange (NYSE) and/or Toronto Stock Exchange listings for the reason that of the complicated trading guidelines about cannabis.

For instance, the TSX prohibits corporations listed on its exchange from getting cannabis assets in nations exactly where marijuana is federally illegal, such as the United States.

Canopy, primarily based in Smiths Falls, Ontario, trades on each the New York Stock Exchange (CGC) and the Toronto Stock Exchange (WEED).

Acreage trades as ACRG.U on the Canadian Securities Exchange, exactly where the TSX rule does not apply.

Acreage was trading $two larger at the finish of trading April 17 compared with the preceding close.

Neither Acreage nor Canopy could be reached quickly for comment.

Marijuana Enterprise Daily will be covering this deal as it unfolds.

Study our ongoing coverage of Canopy Development and Acreage Holdings.

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