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.”