Canopy Re-Engineers Acreage Deal in Tough Times for Cannabis M&A

Canopy Growth Corp. and Acreage Holdings Inc. agreed to alter the terms of their merger agreement, joining a growing list of cannabis deals to be overhauled as the industry grapples with slowing growth and legal roadblocks.

Canopy will provide Acreage shareholders with an up-front cash payment of $37.5 million under the revised terms, adding to the previously announced $300 million payment. Canopy will also loan Acreage up to $100 million to fund its U.S. hemp division and create a new class of shares, the companies said Thursday in a statement.

The re-engineering of an already complex deal comes ...