On November 1st, Constellation Brands, Inc. and Canopy Growth Corporation announced that the companies had closed on the former’s $4 billion investment into the latter company.
The investment had been previously announced on August 15th and was approved by Canopy Growth shareholders and had been granted all required 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 Rob Sands, chief executive officer, Constellation Brands.
He added, “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.”
Constellation Brands increased its ownership interest in Canopy Growth to approximately 37 percent of outstanding common shares of the company with the $4 billion investment. Constellation Brands has also appointed two members of its executive team, as well as two independent directors, to the Board of Directors of Canopy Growth.
“Our cash position opens up a world of opportunity for us,” said Bruce Linton, chairman and co-chief executive officer, Canopy Growth. “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, we’re going to quickly get to work increasing our lead by adding strategic assets around the world.”
Disclaimer: We have no position in any of the companies listed in this article and have not been compensated for this article.
