The Globe and Mail reports in its Friday, Sept. 27, edition that former British Columbia premier Christy Clark is joining Constellation Brands' board of directors.
The Globe's Tim Kiladze writes that Ms. Clark is the first Canadian to join Constellation's board, and her appointment follows the company's $5-billion investment in Canopy Growth in 2018. Constellation now effectively controls Canopy, with four of seven seats on Canopy's board.
Constellation's bet on Canopy has soured. Canopy's losses have been piling up. Poor results from rival weed companies and continuing trouble at Canntrust Holdings, has spooked investors across the sector. Constellation made its investment in Canopy by purchasing 104.5 million new shares from the Canadian pot producer for $48.60, but Canopy is now trading significantly below that level, closing at $32.85 Thursday.
While Ms. Clark's appointment is at the board level, meaning she will not be involved in day-to-day operations, it is another sign that companies with cannabis operations are retooling their governance for a new era. Caldwell Partners says investors have grown impatient as high profile stumbles, like Canntrust, shake investor confidence.
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