Constellation Brands: raises stake in Canadian cannabis firm

(CercleFinance.com) - US alcoholic beverage company Constellation Brands has raised its stake in Canopy Growth by acquiring 104.
5 million shares of the Canadian cannabis company in an investment valued at around 4 billion dollars.

This investment - the largest to date in the cannabis sector - will provide funds which Canopy Growth will deploy to strategically build and/or acquire key assets in almost 30 countries pursuing a federally permissible medical cannabis program, the companies said.

After the deal, Constellation is expected to own about 38% of Canopy's share capital.

Canopy Growth said it expects to benefit from Constellation's understanding of consumer trends and shifting preferences, brand positioning and brand loyalty.

Meanwhile, Constellation Brands said it has come to better understand the cannabis market, and the "tremendous growth opportunity" presented by medical and recreational cannabis.

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