The transaction, which was unveiled last August, was approved by a majority of Canopy Growth shareholders. It has also been awarded the requisite approvals by regulators, including by the Canadian government under the Investment Canada act.
Constellation’s latest investment brings its stake in the company to 37%. The company held a 9.9% stake in October 2017 with the option for future investments.
The investment provides Canopy Growth with substantial funding to build scale in more than 30 countries where medical cannabis programs are permissible. It also establishes the necessary foundation required to supply recreational marijuana as cannabis becomes legal.
“We’re excited to expand our strategic partnership with Canopy Growth and to begin helping them build the global scale needed to win long-term,” said Rob Sands, CEO of Constellation Brands.
Canopy Growth CEO Bruce Linton was similarly bullish about the tie-up. “This investment was a landmark moment for the entire sector when it was announced. Now that the capital is Canopy’s to deploy, we’re going to quickly get to work increasing our lead by adding strategic assets around the world,” Linton noted in a statement.
As part of the new partnership, Canopy Growth’s board will be redrafted. Taking seats on the board will be Constellation's chief operating officer Bill Newlands and its chief financial officer David Klein, as well as current Constellation board members Judy Schmeling and Robert Hanson.
Based in Smiths Falls, Ontario, Canopy Growth is a diversified cannabis and hemp company, offering distinct brands and curated cannabis varieties in dried, oil and Softgel capsule forms.
Canopy Growth shares held steady at $37.10 in Friday’s morning trade session and shares of Constellation Brands were also flat at $201.78.
Contact Ellen Kelleher at [email protected]