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Constellation Brands invests $5B to increase stake in marijuana producer Canopy Growth

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SMITH FALLS, Ont. – Constellation Brands has signed a deal to invest $5 billion in Canopy Growth Corp. to increase its stake in the marijuana company to 38 per cent.

Under the agreement, Constellation will acquire 104.5 million Canopy shares at a price of $48.60 per share.

READ MORE: Ontario government still working out details on rules for new marijuana plan

Canopy shares closed at $32.15 on the Toronto Stock Exchange on Tuesday.

Under the deal, Constellation will nominate four directors to Canopy Growth’s seven-member board of directors.

READ MORE: Plants, edibles and drinks, oh my: Smiths Falls’ Canopy Growth inks deal with alcoholic beverage company

Constellation is also receiving 139.7 million new warrants which are exercisable over the next three years.

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If Constellation exercises all of its existing and new warrants, its ownership in Canopy would exceed 50 per cent.

 

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