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Canopy Growth shareholders approve $5 billion Constellation investment

Canadians won't be able to buy recreational marijuana legally until October 17. But you can already invest in pot. Erica Alini looks at whether cannabis stocks are a solid bet or a fragile bubble – Jul 7, 2018

SMITHS FALLS, Ont. – Canopy Growth Corp. says its shareholders have approved a $5-billion investment in the cannabis company by Constellation Brands Inc.

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The Smiths Falls, Ont.-based company says more than 95 per cent of the votes at its annual meeting supported the private placement of 104.5 million shares and 139.7 million warrants to Constellation subsidiary CBG Holdings LLC.

The alcohol giant announced in August that it would invest in the marijuana producer, giving it a 38 per cent stake in the company.

The transaction is expected to be completed by Oct. 31, after regulatory approval is received under the Investment Canada Act.

Canopy chairman and co-CEO Bruce Linton thanked shareholders for approving what he called “a landmark investment in our business.”

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The Constellation deal comes as other alcohol companies have also started homing in on the cannabis industry.

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