Canopy Growth (CGC)   and Acerage Holdings (ACRGF)  investors both approved the agreement that the former would acquire its U.S. counterpart for a total of $3.4 billion should cannabis achieve legality at the federal level . 

Shares of Canopy Growth were rising 0.7% to $42.35 ahead on Wednesday. 

Canopy isn't actually purchasing Acreage just yet, it's simply buying the rights to purchase the company as soon as cannabis is legalized on the federal level in the U.S. 

Shareholders of Acreage and Canopy shareholders are both scheduled to vote separately at 10 a.m. ET.

If the deal is approved, Acreage will receive an immediate payment of $300 million, or $2.55 per Acreage subordinate voting share. Additionally, Acreage shareholders will receive 0.5818 Canopy common shares per share held.

Per the agreement, only half of Canopy shareholders have to approve the deal while two-thirds of Acreage shareholders must vote yes for the deal to go through.