Shares of Canadian cannabis company Canopy Growth Corp. (CGC) - Get Canopy Growth Corporation Report were rising in morning trading Thursday after it announced the completion the acquisition of 100% of AV Cannabis, one of Ontario's leading cannabis brands.
Ace Valley provides a line of pre-rolled and ready-to-enjoy cannabis products that have a foothold with millennial and Gen Z consumers.
"The team at Ace Valley has built a premium cannabis brand, with an impressive consumer following and we're excited to deploy the full distribution power of Canopy Growth to expand the brand to consumers across Canada," said Canopy CEO Rade Kovacevic.
Canopy Growth shares were rising 0.8% to $32.30 per share Thursday.
Ace Valley holds top-5 and top-10 market positions in Ontario and complements Canopy Growth's existing portfolio of premium vapes, pre-roll and gummies, Canopy said in Thursday's release.
"Having collaborated with Canopy Growth through the early success of the brand, we're confident that the integrity of Ace Valley will endure as the talented team at Canopy Growth takes it to the next level," said Ace Valley founders Mike Wagman and Jesse Dallal.
Details of the acquisition were not disclosed.
Pot stocks have received a boost this week after New York became the 16th state, plus the District of Columbia, to legalize recreational marijuana.
The move could bring in about $350 million a year in taxes for New York once recreational cannabis is fully legalized.
Last November, voters in New Jersey and Arizona voted to legalize marijuana.
About one in three Americans live in a state with legal sales of recreational cannabis, according to the Institute on Taxation and Economic Policy.