US based Constellation Brands Inc. is set to buy 104.5 million shares worth $4 billion in Canopy Growth Corp. With the latest round of investment, Constellation Brands Inc. stake in Canopy Growth Corp. will be 38 percent.
The investment is the largest in the cannabis sector by Constellation after its investment in Canopy last October.
According to Linda Montag, senior vice-president at Moody’s:
“Constellation’s investment in Canopy is a large bet at a very rich price, which can only be justified if the company proves that it can benefit from the changing environment for cannabis in Canada and beyond.”
The investment will be used to build and/or acquire assets worldwide in the markets that allow medical marijuana.
About Constellation Brands Inc.
Founded in 1945, Constellation Brands Inc., together with its subsidiaries, produces, imports, and markets beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy such as Corona Extra, Corona Light, Modelo Especial, Modelo Negra, Modelo Chelada, Pacifico, and Victoria brands, as well as Funky Buddha, Obregon Brewery, and Ballast Point brands. Headquartered in the United States, Constellation Brands Inc. employs 9600 employees.
About Canopy Growth Corp.
Headquartered in Canada, Canopy Growth Corporation is a producer of medical marijuana and its group of brands represents market positions to appeal to a variety of customers from doctors to strategic industry partners.