Canopy Growth Corp, a Canadian cannabis company based in Smith Falls, Ontario, announced Thursday that it had acquired the right to buy Acreage Holdings Inc for $ 3.4 billion as soon as the United States legitimizes the production and sale of cannabis.

“Our eligibility for Acreage provides our entry strategy into the United States as soon as the federal route is open,” said Canopy Chairman and CEO Bruce Linton.

Acreage Holdings Inc is a state-owned company located in British Columbia, Canada, with a diverse portfolio of cannabis cultivation, processing and distribution operations in the United States.

The companies said they would also enter into a licensing agreement giving Acreage access to Canopy Growth brands, including Tweed and Tokyo Smoke, along with other intellectual property.

A growing number of companies are currently trying to advance into the cannabis industry in the United States, as recreational cannabis is currently permitted in 10 states and the District of Columbia and medical marijuana in 23 states.

American bank Merrill Lynch estimates the address market for the global cannabis sector at $ 166 billion, with the United States accounting for more than a third.