When this deal closes, Constellation Brands will own approximately 38% of Canopy Growth (assuming exercising its existing warrants as well) and will be able to name four of Canopy’s board’s seven directors.
If Constellation exercises all of its warrants, another $4.5B will be injected into Canopy Growth and Constellation may have controlling interest at just over 50% ownership. However, as we always remind you, until the deal closes then it has no closed. The Canadian Government will be reviewing this transaction before allowing it to proceed (Click Here). Constellation may also need to navigate some regulatory and legal hurdles in the USA.
One thing is for sure … with expos dedicated to cannabis infused beverages, this may be the next big opportunity for the prepared retail investor.
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