Canopy-Constellation Deal Gets Bigger
Marijuana stocks were hurt this week by delays in the rollout of Ontario’s private-sector legal weed market, which will only allow brick-and-mortar retailers to sell cannabis starting in April 2019 (instead of October 2018).
However, there was some good news as well, namely the flurry of Big Alcohol-marijuana partnerships.
Investors can make big bucks on this trend.
For instance, shares of Canopy Growth Corp (NYSE:CGC) surged by 30% when alcohol company Constellation Brands, Inc. (NYSE:STZ) increased the size of their joint venture.
The beverage giant agreed to invest an additional $3.8 billion into Canopy Growth, raising its ownership stake of the company to 38%. Some are calling the deal the biggest marijuana investment to date. (Source: “‘This is rocket fuel’: Constellation Brands spending $5 billion to boost stake in Canopy Growth,”