In a recent letter to the board of Acreage Holdings, Inc. (CSE:ACRG) (OTC:ACRGF), Marcato Capital Management, LP portfolio manager Mick McGuire argued that “Acreage was too hasty in agreeing to a deal at too low a price,” according to Reuters.
Marcato owns approximately 2.7% of Acreage, which recently announced a definitive arrangement agreement that granted Canopy Growth Corporation (TSX:WEED) (NYSE:CGC) the right to acquire 100% of Acreage, with a requirement to do so at such time as cannabis production and sale becomes federally legal in the United States.
While the deal valued Acreage at $3.4 billion, activist investor McGuire thinks it is still “lopsided in Canopy’s favor.” In his letter, he shares his belief that the company will be worth much more in the future:
“It is highly imprudent for Acreage to sell itself today at the proposed valuation, with so much unlocked growth and value embedded in the Company.”
This letter comes just a week before the record date on Monday, May 13th when investors become eligible to vote on the deal, and more than a month ahead of the scheduled shareholder vote on Wednesday, June 19th.
In the meantime, be sure to subscribe to updates here so you never miss an important development.
Get Real-Time Updates from MJobserver.com