It was revealed on Wednesday that Corona and Modelo beers maker Constellation Brands, has upped its stake in Canopy Growth with an additional $4 billion investment.

It was not that long ago that the company had taken a 9.9 percent stake in the Canadian cannabis company, in a deal that offered the option for future investments.

Shares of Canopy Growth jumped over 30% on the news and seen gains as high as over 50% during intra-day trading on Wednesday.

“Over the past year, we’ve come to better understand the cannabis market, the tremendous growth opportunity it presents, and Canopy’s market-leading capabilities in this space,” Constellation Brands CEO Rob Sands said in a statement.

“We think the premium paid as well as the size of [Constellation’s] investment reflects the long-term attractiveness of the global cannabis opportunity,” Cowen analysts said in a note Wednesday.

“This is rocket fuel,” Canopy Chief Executive Officer Bruce Linton said on the company’s earnings call Wednesday. “We’re going to be way more global.”

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Obstructive Sleep Apena Should Not be Treated with Medical Cannabis
17 April 2018
The VA Secretary Had This To Say About Medical Marijuana
01 June 2017
Tilray Inc. Shares Explode After the Company Announced This
13 September 2018