Ontario-based medical cannabis firm Canopy Growth announced via a 26 September press release that it is selling 38% of its shares to Constellation Brands for CA$5bn
Constellation, an American Fortune 500 company which produces and markets alcohol for international markets, is the latest major beverage company to take an interest in entering the cannabis market.
Coca-Cola was recently reported
to be in talks with Aurora Cannabis regarding a potential CBD-infused drink.
Canopy’s decision to accept the CA$5bn dollar investment came during its annual general and special meeting of shareholders on 26 September.
Of the 40.9% of common shares represented at the meeting, approximately 95% of the shareholders agreed to the sale of the 38% stake in the firm to Constellation.
Bruce Limpton, chairman and co-CEO of Canopy Growth, said in the company’s statement:
“We’ve established a leadership position in this industry by pushing the boundaries and executing in unchartered markets."
“With shareholders aligned on our vision of the future we’ll get to work deploying capital and creating even more value for the hundreds of thousands of people who trust us with their hard-earned money."
The transaction is expected to close on 31 October, subject to regulatory approval, and the firm’s board of directors will be reshuffled.
“Murray Goldman and Chris Schnarr will be removed as directors effective as of the closing of the Transaction, and William Newlands, David Klein, and Judy Schmeling will be elected as directors of the Company as nominees of CBG," the statement said.
CBG is an affiliate of Constellation Brands.