"Through this investment, we are selecting Canopy Growth as our exclusive global cannabis partner", said Rob Sands, Chief Executive Officer, Constellation Brands. Constellation fell 7.2 percent to $205.79 in NY.
As mentioned above, Canopy Growth is having an incredibly strong start to the trading session this morning after news broke that the company is the center of a 5 billion Canadian dollar investment.
The alcohol firm wants to capitalise on the growing legalisation of the drug. In May, it began trading on the New York Stock Exchange in addition to the Toronto Stock Exchange.
"With our unparalleled success in Canada and Europe, Spectrum Cannabis' expanding global operational footprint now covering 11 countries, our active regulatory and global market development efforts, as well as approvals to proceed with the first of many planned clinical trials of cannabis-based medical therapies for both humans and animals, our leadership position in worldwide medical cannabis markets continues to strengthen", said chairman and co-CEO Bruce Linton in a statement.
"Our business can now make the strategic investments required to accelerate our market position globally", said Bruce Linton, co-chief executive of Canopy Growth. The alcoholic beverage company joins rivals, including Molson-Coors Brewing and Anheuser-Busch, in exploring business opportunities in the cannabis sector.
Constellation, whose products include popular beer brands Corona and Modelo, will hold a 38 percent stake in Canopy Growth under a deal that provides the Canadian company with $4 billion for investment, said a joint press release.
Turkey hikes tariffs on imports of several USA products
The 2nd Penal Court in Izmir rejected his appeal and sent the pastor's petition to an upper court, Hurriyet Daily News reported . Turkish President Tayyip Erdogan attends a news conference in Ankara , Turkey , August 14, 2018.
Turkish lira rebounds after Qatar pledges $15 billion
Amnesty International says a court in Istanbul has ruled for the release from prison of the rights group's former Turkey chairman. Turkey's exports to the United States previous year amounted to $8.7-billion, making it Turkey's fifth-largest export market.
Smoking E-cigarettes Increases Risk Of Developing Lung Disease
Previous studies have focused on the chemical make-up of e-cigarette liquid before it is vaped, the researchers said. He also advised that further research is required to fully understand the long-term health impact of vaping .
Canopy, based in Smiths Falls, Ontario, doesn't now have any operations south of the border, where marijuana is banned federally.
Other publicly traded cannabis companies, such as Cronos and MedMen Enterprises, rallied in the United States and Canada. Entering the USA may create challenges for its listing on the Toronto Stock Exchange, as the bourse has said it may delist marijuana companies that run afoul of US federal law.
The price that Constellation is paying values Canopy at about $12 billion, which is more than 40 times the revenue that the FactSet consensus foresees for Canopy's fiscal year ending March 2019, and 180 times profits for 2020-the first year in which analysts expect the unprofitable venture to report earnings.
Hold onto your hats everyone, an absolutely epic Canopy Growth Corp (TSE:WEED) (NYSE:CGC) (FRA:11L1) fueled cannabis sector upswing is expected to kick-off in the next 60 minutes. If Constellation exercises all its existing and new warrants, it could increase its stake to more than 50 percent. Constellation also will get warrants to acquire additional shares, and majority control, in the future.
Constellation's investment on Wednesday is by far the largest strategic investment seen in the space to date, said Russell Stanley, an analyst with Echelon Wealth Partners in a research note.