Constellation spends $4bn to lift stake in cannabis group Canopy

Brewer of Corona doubles down on its bet on marijuana ahead of Canadian legalisation
The Financial Times (UK)
Wednesday, August 15, 2018

Beer maker Constellation Brands doubled down on its bet on the budding marijuana industry, pumping just under $4bn into a Canadian group that has sought to capitalise on the spreading legalisation of weed. The company said it would buy 104.5m shares of Canopy Growth at C$48.60 apiece, lifting its stake to 38 per cent. The investment, which also includes warrants that could lead to it increasing its stake by a further $3.4bn, follows Constellation’s acquisition of 10 per cent of Canopy last year. The transaction between Constellation and Canopy is the latest in a wave of pot deals, as traditional makers of beer and spirits eye what they believe is the next big market where consumers will get their buzz.