August 15, 2018 9:04 am
Updated: August 15, 2018 11:07 am

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

Officials at Tweed in Smiths Falls are ramping up production in preparation for legalization in October. The supplier hopes to give visitors an experience unlike no other.

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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.

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

 

© 2018 The Canadian Press

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