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.
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.
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Constellation is also receiving 139.7 million new warrants which are exercisable over the next three years.
If Constellation exercises all of its existing and new warrants, its ownership in Canopy would exceed 50 per cent.