A $5-billion injection into Canada’s cannabis industry by an American alcohol company is the largest investment to date.
Constellation says it wants to position Canadian company Canopy Growth as a global leader in cannabis production, branding, intellectual property and retailing.
“Our business can now make the strategic investments required to accelerate our market position globally,” said Canopy Growth board chair and Co-CEO Bruce Linton.
Constellation CEO Rob Sands said that through the investment, Constellation is selecting Canopy Growth as its “exclusive global cannabis partner.”
Constellation will increase its ownership interest in Canopy Growth by acquiring 104.5 million shares directly from Canopy Growth, thereby achieving approximately 38 per cent ownership when assuming exercise of the existing Constellation warrants.
As part of the proposed transaction, Constellation will nominate four directors to Canopy’s seven-member Board of Directors,