The U.S. distributor of Corona beer is chasing a new type of buzz.
Constellation Brands Inc. has agreed to take a 9.9% stake in Canopy
New Cannabis Ventures also has the story and they are putting the $ figure for the investment at $US191 Million
The Wall Street Journal broke big news for the global alcohol and cannabis industries today, detailing an investment by Constellation Brands (NYSE: STZ) into Canadian licensed cannabis producer Canopy Growth (TSX: WEED) (OTC: TWMJF). Constellation will acquire 9.9% of Canopy Growth for C$245mm, which at the current exchange rate is equal to about US$191mm. It also has an option to increase the stake to 20%.
The exact terms of what is the first major cross-industry investment will be disclosed in a press release before the market opens tomorrow, but Canopy Growth CEO Bruce Linton stated that it was at a premium to the close of C$12.79 on Friday. Canopy Growth had 165.3mm shares outstanding and fully diluted shares of 176.54mm including 11.24mm options as of June 30th and will report its FY18-Q2 results by November 14th.