Constellation Brands scores some WEED in Canada

UPDATE 6:47 a.m. PDT 10/30/17: Bloomberg: WEED shares up 7%+ in early trading on news of buy-in by Constellation Brands. Use real-time link, below to get real-time quote.

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FROM NEWS RELEASE, October 30, 3:41 a.m.

Constellation Brands to Acquire 9.9% minority stake in Canopy Growth Corporation (WEED:CN)

Says no U.S. Cannabis sales until legal

 

VICTOR, N.Y., Oct. 30, 2017 – Constellation Brands (NYSE: STZ and STZ.B), a multinational beverage alcohol company, this morning said it has signed an agreement to acquire a 9.9% minority stake in  Canopy Growth Corporation, a  public company and provider of medicinal cannabis products based in Ontario, Canada.

 

Constellation said the investment and relationship were a fit with its “long-term strategy to identify, meet and stay ahead of evolving consumer trends and market dynamics, while maintaining focus on its core total beverage alcohol”

 

The company said will not sell any cannabis products in the U.S. or other markets until legal “at all government levels.”

 

“Canopy Growth has a seasoned leadership team that understands the legal, regulatory and economic landscape for an emerging market that is predicted to become a significant consumer category in the future,” said Constellation Brands President and Chief Executive Officer, Rob Sands.

 

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Founded in 2014, Canopy Growth Corporation is an early commercial player in Canada’s legal cannabis market. The company is currently traded on the Toronto Stock Exchange (TSX) under the symbol “WEED:CN” and has a market cap of more than C$2 billion. WEED owns a collection of diverse brands serving customers in Canadian and international markets where medicinal cannabis products are legal.

 

Bruce Linton, Chairman and Chief Executive Officer, Canopy Growth Corporation said, “We look forward to working with the Constellation Brands team to access their deep knowledge and experience in growing brands as we continue to expand our business.”

 

The investment is expected to approximate C$245 million representing an ownership interest of 9.9% of Canopy Growth Corporation, plus warrants which give Constellation Brands the option to purchase an additional ownership interest in the future. The transaction is expected to close during the Company’s third quarter of fiscal 2018.

About Canopy Growth Corporation

Canopy Growth is a  diversified cannabis company, offering distinct brands and curated cannabis varieties in dried, oil and capsule forms.

 

Through its wholly-owned subsidiaries, Canopy Growth operates numerous  production facilities with over half a million square feet of GMP-certified indoor and greenhouse production capacity.

 

Canopy Growth has established partnerships with leading sector names in Canada and abroad, with interests and operations spanning four continents. Canopy Growth says it is  dedicated to educating health care practitioners, providing consistent access to high-quality cannabis products, conducting clinical research, and furthering public understanding of cannabis.

About Constellation Brands

Constellation Brands (NYSE: STZ and STZ.B), a Fortune 500 company, is a global producer and marketer of beer, wine and spirits with operations in the U.S., Mexico, New Zealand, Italy and Canada. Based in Victor, N.Y., the company is committed to brand building, to its trade partners, the environment, its investors and to consumers around the world.

 

Founded in 1945, Constellation has more than 100 brands in its portfolio; about 40 wineries, breweries and distilleries; and approximately 9,000 talented employees.