By Benjie Cooper
IG: @nuglifenews
YouTube: Lucid’s Vlog
Constellation Brands announced their acquisition of a 9.9% share of Canadian cannabis producer Canopy Growth Corporation for $245 million in October of 2017, forging the first bond between a financial heavyweight from the alcohol industry and a large-scale legal marijuana business.
On August 15, 2018, Constellation announced that they were increasing their stake in Canopy to 37%, acquiring an additional 104.5 million shares at $48.50 apiece to become the cultivator’s global partner.
Now, Constellation has announced the closing of their $5 billion (USD 4 billion) deal with Canopy after gaining overwhelming approval from a majority of the company’s stakeholders and obtaining all required Canadian regulatory approvals.
“We’re excited to expand our strategic partnership with Canopy Growth and to begin helping them build the global scale needed to win long-term,” said Constellation CEO Rob Sands in a press release on Thursday, November 1. “The global cannabis market presents a significant growth opportunity and Canopy Growth is well-positioned to establish a strong leadership position in this fast-evolving category.”
Canopy will utilize the new funds from Constellation to establish their presence in more than thirty countries around the world that have legalized medicinal cannabis and build a foundation for recreational marijuana as it becomes legal.
“Our cash position opens up a world of opportunity for us,” said Canopy CEO Bruce Linton. “Relative to our valuation, we have never been in a better position to create shareholder value. This investment was a landmark moment for the entire sector when it was announced.”
“Now that the capital is Canopy’s to deploy,” he said. “We’re going to quickly get to work increasing our lead by adding strategic assets around the world.”
Canopy Growth, who set up operations in an old Hershey’s chocolate factory in Smith Falls, Ontario in 2014 under the name Tweed Marijuana Inc., was the first cannabis company to be publicly traded in North America.
