Canopy Growth Corp. (CGC - Get Report) shares were indicated sharply higher Thursday following a report the Canadian marijuana group is close to buying U.S.-based Acreage Holdings (ACRGF) .

Reuters reported that the potential deal, which could be worth around $880 billion, would give Canopy both the rights to Acreage's products and the potential to exchange stock should marijuana become legal in the United States. The deal would also give Acreage access to Canopy's intellectual property and marketing, Reuters reported, in a move to drive growth in a business that already has licenses or agreements in 19 U.S. states.

Canopy Growth shares were marked 5.62% higher in pre-market trading Thursday, indicating an opening bell price of $45.26 each, a move that would extend the stock's year-to-date gain to around 56.5%. Acreage Holdings closed at $22.49 each on the Canadian Securities Exchange yesterday, giving the New York, NY-based group a market value of around $690 million.

Earlier this week, Canopy Growth expanded European footprint with an all-cash purchase of Cafina, a Spain-based cannabis producer licensed to cultivate, distribute and export marijuana for medical and research purposes in the region's fourth-largest economy.

Canopy is adding Cafina's 1,600-square-foot greenhouse to its existing 430,000-square-foot licensed production site in Denmark, as well as its facility in Germany, the company said, and will retain CEO Xavier Delas Martinez to manage Cafina's site as Canopy injects capital in order to scale the operation through the year.

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