Sign up for our daily briefing
Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.
Stay on top of the latest market trends
Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.
Sports news worthy of your time
Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.
Tech news worthy of your time
Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.
Get the inside stories
Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Want a daily digest of the top Denver news?
Get a daily digest of the most important stories affecting your hometown with Axios Denver
Want a daily digest of the top Des Moines news?
Get a daily digest of the most important stories affecting your hometown with Axios Des Moines
Want a daily digest of the top Twin Cities news?
Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities
Want a daily digest of the top Tampa Bay news?
Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay
Want a daily digest of the top Charlotte news?
Get a daily digest of the most important stories affecting your hometown with Axios Charlotte
The companies behind the $3.4 billion as-soon-as-marijuana-is-legal merger, Acreage Holdings and Canopy Growth, have launched a charm offensive intended to get disgruntled shareholders to approve the deal.
What's happening: Since being announced in April, the deal has been touted as a coup for Canopy and a cop-out for Acreage by unhappy investors.
- Activist hedge fund Marcato Capital Management said in a public letter on May 6 it would vote its nearly 3% of Acreage stock against the "value destructive" deal, and urged other shareholders to do the same, Barron's reported.
- The market is clearly worried about the possibility that the merger falls apart — Acreage shares have fallen by more than 15% since the deal was announced, while Canopy's stock, which rose 15% in the days following news of the deal, has fallen below its share price before the deal's announcement.
On the other hand: Canopy agreed to pay $2.55 in cash and 0.5818 of Canopy shares for each Acreage share. The growing divide between the 2 companies' share prices is making that deal look sweeter.
Yes, but: Acreage CEO Kevin Murphy has downplayed the discontent, saying in an interview Friday that he feels "very, very good about where we are and where we're going,” and expects 100% approval. The deal requires 66% of shareholders approve to be finalized.
Go deeper: Marijuana, psychedelics get a second look from Big Pharma