What happened Shares of Canopy Growth (NASDAQ: CGC) had dropped 2.7% by 11:50 a.m. EDT on Thursday after the Canadian cannabis company announced that it will acquire fellow Canadian producer Supreme Cannabis (OTC:SPRW.F). So what Canopy Growth will pay for the acquisition in both stock and cash, trading 0.12 shares of its own stock, and a token $0.0001 (that's 1 penny per every 100 shares) for each share of Supreme Cannabis outstanding. In total, the deal works out to 435 million Canadian dollars ($348 million) -- 66% above Supreme Cannabis' closing price last night. In exchange, according to the announcement of the deal, Canopy will gain a top-10 marijuana company in Canada, a "low-cost and scalable cultivation facility," and one of Canada's leading premium brands in 7ACRES. Image source: Getty Images. Still, in either currency, Canopy Growth is paying a 66% premium to acquire Supreme Cannabis. No wonder Canopy investors are wondering if this is a good price. Now what So is it a good price? At $348 million, Canopy Growth is valuing Supreme Cannabis at about 8.85 times its $39.3 million in trailing-12-month sales (according to data from S&P Global Market Intelligence). That sounds like quite a lot, until you consider that at $11.5 billion in market capitalization, Canopy Growth stock costs 28.5 times its own trailing sales. (Neither company is currently profitable, which is why we have to value them both on sales.) Viewed in that light, even at a 66% premium, it looks like Canopy Growth is getting a steal of a deal here. 10 stocks we like better than Canopy Growth Corp.When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Canopy Growth Corp. wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Source