Article by Marijuana Business Daily
New York-based alcohol titan Constellation Brands has exercised warrants to purchase additional shares of Canopy Growth, increasing its stake in the Ontario cannabis producer.
Upon issuance, the common shares represented approximately 5% of Canopy’s issued and outstanding common shares, the companies said in a news release.
The transaction brings Constellation’s ownership in the Canadian firm to 38.6%.
Constellation – which owns, distributes and markets 100 beer, wine and spirits brands – made a splash in the cannabis space in October 2017.
At the time, it announced its intention to acquire 9.9% of the Smiths Falls company for 245 million Canadian dollars ($173 million).
The warrants were exercised at CA$12.98 per share.
Constellation has additional warrants and senior notes that, if converted and exercised, would increase its ownership to approximately 55.8%.
“While global legalization of cannabis is still in its infancy, we continue to believe the long-term opportunity in this evolving market is substantial,” Constellation CEO Bill Newlands said in the release.
For the nine-month period ending Dec. 31, 2019, Canopy reported a net loss of CA$1.8 billion.