October 15, 2018 / 1:06 PM / 9 months ago

BUZZ-Canopy Growth to acquire hemp company Ebbu, shares up

** U.S.-listed shares in Canadian pot company Canopy Growth rise ~3 pct premarket after co agrees to acquire assets of hemp research co Ebbu Inc

** Stock is second most traded among NYSE-listed companies premarket

** Canopy Growth to pay Ebbu C$25 mln in cash and issue 6.2 mln shares for buying assets, including IP and research, for its hemp and THC-rich cannabis genetic breeding program and cannabis-infused beverage capabilities

** Up to C$100 mln more in purchase price will be payable if certain scientific related milestones are achieved within two years following closing, deal expected to close in Nov. 2018, Canopy says

** “By applying Ebbu’s IP, the company has the potential to vastly reduce the cost of CBD production, a sought-after cannabinoid in both the wellness and medical spaces” - Canopy

** Co’s shares up more than 50 pct since NYSE listing in May, while Canadian, primary-listed stock more than doubled YTD (Reporting by Sruthi Shankar in Bengaluru)

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