Big News for a Leading Marijuana Stock

In one of the biggest updates to marijuana stock to watch Canopy… The post Big News for a Leading Marijuana Stock appeared first on Marijuana…

In one of the biggest updates to marijuana stock to watch Canopy Growth Corp. (CGC Stock Report), Constellation Brands has officially exercised its warrants. For those who don’t know, Constellation Brands is one of the leading marijuana stock investors in the cannabis industry. The company famously invested billions into Canopy Growth only a few years ago. However, on May 4th, 2020, Constellation stated that it will exercise its warrants to purchase almost 20 million common shares of Canopy Growth.

What This Means for the Cannabis Industry and Canopy Growth

The warrants in question were issued a few years ago back in November of 2017. Those shares were executed at around CA$13 per share for a total amount of CA$245 million. The shares when issues represented around 5% of the outstanding shares of Canopy overall. With this new exercise of warrants, the company officially has 140 million warrants to buy common shares of Canopy Growth. This would make Constellation Brands a 55% owner of Canopy Growth in terms of its issues and outstanding shares.

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CEO of Constellation, Bill Newlands stated that “while global legalization of cannabis is still in its infancy, we continue to believe the long-term opportunity in this evolving market is substantial. Canopy is best positioned to win in the emerging cannabis space and we are confident in the strategic direction of the company under David Klein and his team.” David Klein, CEO of Canopy Growth added that “this additional investment validates the work our team has done since attracting the initial investment in 2017. It also strengthens our ability to pursue the immense market and product opportunities available to Canopy in Canada, the U.S. and other key global markets.”

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This remains big news for the cannabis industry as a whole and Canopy at a more specific level. This renewed investment shows a large amount of confidence in the future of the industry overall. But, this remains bigger than just an investment into one of the largest cannabis stocks in the market. Rather, it shows that Constellation brands is willing to take out an immense stake in the future of the cannabis market. Because of this, investors should continue to keep an eye on price action for Canopy and the future potential of the cannabis market.

The post Big News for a Leading Marijuana Stock appeared first on Marijuana Stocks | Cannabis Investments and News. Roots of a Budding Industry.™.

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