Constellation Brands confirms 9.9 per cent stake in Canopy Growth
Posted by Sagar Satapathy on October 31, 2017.
Constellation Brands, one of the world’s largest alcohol companies, have confirmed that it has acquired a minority stake in Canada-based Canopy Growth Corporation, a leading provider of medical cannabis products.
It will invest $245 million in Canopy Growth in exchange for the 9.9 per cent stake in Smith Falls, an Ontario based company. The transaction is expected to close during the Company’s third fiscal quarter in 2018.
“Canopy Growth has a seasoned leadership team that understands the legal, regulatory and economic landscape for an emerging market that is predicted to become a significant consumer category in the future. Our company’s success is the result of our focus on identifying early stage consumer trends, and this is another step in that direction,” said Rob Sands, Constellation Brands President and Chief Executive Officer.
The investment also entitles Constellation Brands the option to purchase an additional ownership interest in the future. The two companies said they will work together to make cannabis-based drinks for distributions where medical pot products is legal.
“In Constellation we have a strategic ally that will join us as we lead the global cannabis sector into the future,” said Canopy Growth CEO Bruce Linton in a press release.
"We have also strengthened our balance sheet to fund the ambitious expansion efforts we have planned heading into 2018 – a year that will see unprecedented growth in medical and adult-use opportunities."
Canopy Growth Corporation is one of the earliest commercial company in Canada’s legal pot business. The company, which has a market cap of more than C$2 billion, has a diverse collection serving international markets where medicinal cannabis products are legal.comments powered by Disqus