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Canopy Growth Corp
Symbol WEED
Shares Issued 220,585,018
Close 2018-08-16 C$ 40.68
Recent Sedar Documents

Van Sun says Canopy investment seen as "wake-up" call

2018-08-16 06:43 ET - In the News

The Vancouver Sun reports in its Thursday edition that the blockbuster $5-billion investment by American drinks company Constellation Brands in pot producer Canopy Growth has raised the stakes in the global cannabis industry. Postmedia's Geoff Zochodne writes that it may be the loudest wake-up call yet for potential competitors in Big Booze, Big Pharma and Big Tobacco. If approved, Wednesday's arrangement could see Constellation's ownership stake in Canopy rise to 38 per cent, though it also includes warrants that if exercised could eventually take that stake above 50 per cent. "This is about accelerating and getting way further out there before those other big names are in," Canopy promoter Bruce Linton told analysts on a conference call. "They have to get in the space, because this is the most disruptive, rapid growth opportunity for EBITDA [earnings before interest, taxes, depreciation and amortization] that any of them are looking at." Mr. Linton called the capital injection "rocket fuel," and said Canopy's "current target acquisition list" for international and non-cultivation assets tops $1-billion. Goldman Sachs advised Constellation on the transaction, while Bank of America provided the financing.

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