On May 18, 2022, Canopy Growth Corporation, a leader in the cannabis industry, has entered into agreements to acquire up to 100% of Jetty, a California-based cannabis extract producer, when THC becomes federally permissible in the U.S. or sooner if Canopy elects. The transaction values Jetty at CAD1.38 billion (US$1 billion), inclusive of the funds raised through the deal. Jetty, founded in 2013, ranks as a top 10 cannabis brand in California and is a leader in solventless vape technology. Canopy Growth's acquisition will further its U.S. THC ecosystem, adding a brand with over 75% market share in solventless vapes in California. This investment is expected to bolster Canopy's positioning for the eventual federal permissibility of THC in the U.S. Canopy will initially pay approximately CAD88 million (USD$69 million), primarily in its common shares, for roughly 75% equity interest in Jetty. Additional payments will be made upon exercising the option to acquire the remaining equity interest. Until the rights are exercised, Canopy and Jetty will operate independently. Paul Hastings LLP and Cassels Brock & Blackwell LLP serve as U.S. and Canadian legal advisors to Canopy Growth, respectively, while Raines Feldman LLP is the legal counsel for Jetty.