Constellation Brands Execs Will Join Canopy Growth Board; Ontario Marijuana Laws Unveiled
Two senior executives of Corona parent Constellation Brands (STZ) will become directors of Canopy Growth (CGC) after the Canadian marijuana producer’s shareholders late Wednesday approved the beer-and-wine giant’s $4 billion investment in the company. Canopy stock fell Thursday along with several other marijuana stocks, but recent cannabis IPO Tilray (TLRY) stock rallied.
Canopy Growth expects the deal with Constellation to close on or before Oct. 31. When that happens, Constellation COO William Newlands and CFO David Klein will become directors of Canopy. So will Judy Schmeling, who is a Constellation Brands board member.
The moves deepen Constellation Brands’ relationship with Canopy Growth and its involvement in cannabis, which will become legal on a recreational level in Canada on Oct. 17. The deal gives Constellation the option to control more than half of Canopy. It also represents a massive bet on cannabis at a time when the biggest market, the U.S., still federally forbids it.
Constellation and Canopy were not immediately available for comment.