The giant influx of cash from Constellation Brands is the largest strategic investment in the cannabis market to date. It nearly quadruples the alcohol company’s stake in Canopy Growth to 38 percent.
Source: www.npr.org
Constellation Brands, owner of Corona beer, will invest $5 billion CAD into Canada-based cannabis producer Canopy Growth, currently the world’s highest-valued marijuana stock. This is one of the largest strategic cannabis market investments yet, highlighting the interest of alcohol companies to look at investing into the cannabis industry. Disclosed in a press release, Canopy Growth announced that this funding will assist the Company to expand and operate in an estimated 30 countries around the world, pursuing federally permissible medical cannabis programs and establishing new recreational cannabis markets across the globe. They also expect to branch out into other recreational cannabis products, such as beverages, and develop medical research in 11 countries. Canopy Growth’s shares saw an increase of 30 percent, while this investment brings Constellation’s stake in the Company up to 38 percent.
