08:54 AM EDT, 06/04/2024 (MT Newswires) -- Canopy Growth ( CGC ) edged down in premarket Nasdaq trading after the cannabis company on Tuesday said it exercised an option to acquire all of the Class E subordinate voting shares of Acreage Holdings (AGR-A-U.CN) ahead of closing the 2019 acquisition agreement that will make Acreage a unit of Canopy USA.

Following the exercise of the option, Canopy will also acquire all of Acreage's fixed and floating shares while also buying US$99.8 million of the New York-based cannabis producer's debt.

Canopy first agreed to buy Acreage in 2019 for US$3.4 billion, but was waiting for U.S. cannabis regulations to be relaxed prior to closing the transaction.

"These are major steps forward and consistent with the strategy outlined by Canopy Growth ( CGC ) to allow our shareholders to benefit from our ownership of non-voting shares in Canopy USA, and we're excited to see this advancing as more of Canopy USA's priority markets come online for adult use across the Midwest and Northeast," Canopy Growth ( CGC ) Chief Executive David Klein said in a release.

Canopy shares were last seen down US$0.10, or 1.2%, to US$7.92 in premarket trading, They closed down $0.66 to $10.93 Monday on the Toronto Stock Exchange.