Constellation Brands may not be too excited about the loss it will be taking from its investment in weed producer Canopy Growth.
The company expects $54. 8 million in quarterly losses.
Recently Canopy’s Chief Executive Officer Mark Zekulin told investors that the company needs another three to five years to turn in a profit.
Constellation, which has an almost 56% stake in Canopy, disclosed the loss it expects to have in a regulatory filing on Monday.
In late June, the Coronoa maker’s executives had told analysts they were not pleased with Canopy losing money. Shortly after Canopy fired its co-CEO Bruce Linton.
Constellation reported a loss of $1.30 per share in the first quarter compared with a profit of $3.77 a year ago, mainly due to a 20 cents per share loss related to Canopy Growth.
