Constellation Brands is upping its stake in Canopy Growth by $4 million to 38%.
The investment overshadowed a bigger-than-expected first-quarter loss by the Canadian cannabis company.
Shares of CGC surged more than 50% following the announcement.
Follow Canopy’s stock price in real-time here.
Canopy Growth, the largest publicly traded marijuana company, fell short of Wall Street’s earnings expectations on Tuesday, but news of a new investment overshadowed the larger-than-expected loss.
Shares of the Canadian company surged more than 50% in early trading Wednesday after Canopy announced Constellation Brands — the $42 billion company behind Corona — had upped its investment in the marijuana grower by $4 million and now owns a 38% stake.
Canopy Growth said in a press release that the proceeds will allow it to “strategically build and/or acquire key assets needed to establish global scale in the nearly 30 countries pursuing a federally permissible medical cannabis program, while also rapidly laying the global foundation needed for new recreational cannabis markets.”
In an interview with Business Insider in July, Canopy Growth’s CEO, Bruce Linton, explained he wouldn’t have chosen just any alcohol brand to work with, but that Constellation’s entrepreneurial spirit made it stand out despite its $42 …read more
Source:: Businessinsider – Finance
