Constellation Invests Additional $4B in Pot Grower

Canopy Growth reports quarterly earnings in-line with analyst expectations; net loss of C$90.9mln

Constellation fell 7.2 percent to $205.79 in NY.

Shares of Canopy Growth shot up 26 percent to $31.01 in early trading in NY, while Constellation dropped 5.0 percent to $210.65.

The alcohol firm wants to capitalise on the growing legalisation of the drug.

It is a 51-per-cent premium to Tuesday's closing price on the Toronto Stock Exchange.

The big buy lifted other Canada weed stocks like Aurora Cannabis (ACB.Canada) and Aphria (APH.Canada), which had moved sideways since Barron's sampled the sector in a March cover story that described Canada's legalization of adult recreational use as historic but overvalued in the stock market.

"This is rocket fuel", Canopy Chief Executive Officer Bruce Linton said of the investment of on the company's earnings call on Wednesday.

Canopy, based in Smiths Falls, Ontario, doesn't now have any operations south of the border, where marijuana is banned federally.

Global consumer spending on cannabis will hit US$32 billion by 2022, triple current levels, according to a report this week by USA research firms Arcview Market Research and BDS Analytics.

Key ruling due for women on trial in Kim Jong Nam killing
Nine Malaysians stuck in Pyongyang will be free to travel and North Koreans in Kuala Lumpur will be allowed to go home. Kim Jong-nam died at Kuala Lumpur's airport a year ago after the toxic VX nerve agent was rubbed on his face.

Nvidia Unveils Turing Architecture For More Powerful GPUs
The lower-end RTX 5000 packs 3,702 CUDA cores , 384 Tensor Cores and 16GB of memory and will sell for $2,300. The top of the line Quadro RTx 8000 comes for a whopping $10000.

CDC studying measles outbreak in NC, other states
The rash appears as red and blotchy marks on the hairline that travel down over several days, turning brown and eventually fading. The CDC says two doses of MMR vaccine are about 97% effective at preventing measles; one dose is about 93% effective.

Herzog added "there is an expectation that marijuana will eventually be legalized in the U.S".

Corona beer owner Constellation Brands is set to pour some $4bn (£3.15bn) into Canada's top cannabis producer, Canopy Growth, in a deal marking the largest investment in the industry to-date. Today is all about this morning's transformative announcement, which sends shock waves throughout the sector.

Founded in 2013, Canopy Growth has become a leader in Canada's legal cannabis market. Constellation could also increase its ownership to over 50 percent if it exercises warrants received as part of the deal. But in the coming years, Canopy's competition will be the likes of "big pharma", and "packaged beverage", rather than Canadian cannabis companies, Linton told analysts on a conference call Wednesday.

Constellation said it did not have a plan for such a product yet.

"Constellation's concentration of global cannabis activities exclusively through Canopy, coupled with the investment and its expert capabilities in brand-building, marketing, consumer insights and M&A, will be a huge benefit as we look to expand our portfolio in Canada, the United States and emerging cannabis markets around the globe".

Constellation's investment on Wednesday is by far the largest strategic investment seen in the space to date, said Russell Stanley, an analyst with Echelon Wealth Partners in a research note. The acquisition price is right a few cents below Canopy Growth's all-time high, even though the common shares are (were) trading at a ↓32.68% discount, as of yesterday's close.

Canopy, which has the largest legal cannabis production footprint in the world, now produces cannabis-based oils and soft gel caps, among other products.

Canopy Growth will remain a Canadian company with its headquarters in Smiths Falls, Ontario, and will continue to be led by its existing management team.

Related News:

  • With Iran, Turkey we defeated terrorists in Syria: Lavrov

    With Iran, Turkey we defeated terrorists in Syria: Lavrov

    He also noted that Moscow appreciates Turkey's rejection to join the anti-Russia sanctions by the West, saying the U.S. There has already been several moves by Russian Federation to use currencies other than the dollar in worldwide trade.
    Facebook Beats Sony to Spanish Soccer Rights in India

    Facebook Beats Sony to Spanish Soccer Rights in India

    The Spanish football season kicks off this Friday and fans in India can tune in via the social network to watch all 380 matches. The matches would be available on the official La Liga Facebook page as well as individual club pages, the statement added.
    ‘Sleeping elephant’ India is now up and running, says PM Modi

    ‘Sleeping elephant’ India is now up and running, says PM Modi

    He particularly raised the issue of instant triple talaq and said that the practice caused great injustice among Muslim women. The scheme - popularly known as Modicare - has been described as the world s biggest government health insurance initiative.
  • Judge Allows Mueller Case Against Russian Company to Proceed

    Judge Allows Mueller Case Against Russian Company to Proceed

    The percentage is lowest among Democrats, who are more likely to favor giving Mueller the time he needs to complete the probe. This content is published through a licensing agreement with Acquire Media using its NewsEdge technology.
    Trump Signs $717 Bln Defense Bill

    Trump Signs $717 Bln Defense Bill

    Separately, the NDAA authorizes spending Dollars 7.6 billion for 77 F-35 Joint Strike Fighter jets, made by Lockheed Martin Corp. In a statement on its website, the ministry said that the U.S. should treat investors with objectivity and fairness.
    Trump revokes security clearance from ex-CIA chief over 'erratic behaviour'

    Trump revokes security clearance from ex-CIA chief over 'erratic behaviour'

    It is for the foregoing reasons that I have exercised my Constitutional authority to deny Mr. On Wednesday the President returned the favor when the White House announced that Mr.
  • Korean Leaders Agree to New September Summit in Pyongyang

    Korean Leaders Agree to New September Summit in Pyongyang

    The three-year conflict ended in an armistice , not a peace treaty, leaving the two Koreas technically at war. The South Korean president helped bring about the historic summit in June between Kim and U.S.
    Kobe Bryant's $6M investment in sports drink now worth $200M

    Kobe Bryant's $6M investment in sports drink now worth $200M

    The deal puts BodyArmor in Coke's powerful distribution network, on their delivery trucks throughout most of the United States. He has since built his own production company, Granity Studios, and is making waves with his own reality show, "Detail".
    Abadi: Iraq does not abide by 'unjust' USA  sanctions on Iran

    Abadi: Iraq does not abide by 'unjust' USA sanctions on Iran

    Iraq is the second largest importer of Iranian products, aside from fuel, with total imports reaching about $6 billion past year . Iran has maintained close ties to Iraq's government since the 2003 US -led invasion toppled Saddam Hussein, Tehran's archenemy.
  • Jaguars CB Jalen Ramsey calls Bills rookie QB Josh Allen ‘trash’

    Jaguars CB Jalen Ramsey calls Bills rookie QB Josh Allen ‘trash’

    Ramsey talking about Roethlisberger the way a father talks about his child doing something really stupid is wonderful. Because if somebody does pick him, and they just stay in the locker room - I think it's like a pride thing now.
    Trump signs $716 bil. defense policy bill

    Trump signs $716 bil. defense policy bill

    The US has cancelled its military exercises with China in a $716 billion defence bill signed by President Trump yesterday. The law also bars the USA from selling F-35 fighter jets to North Atlantic Treaty Organisation member Turkey.
    Sarah Sanders’s Correction of Jobs Stats Felt Rare Because It Was

    Sarah Sanders’s Correction of Jobs Stats Felt Rare Because It Was

    The selection of dates is somewhat unusual because it takes into account job gains or losses before Trump and Obama took office. Omarosa then began to speak out against Trump himself, telling Noah that the constant lies were her breaking point.


Most liked

FIFA Ranking: Super Eagles drops to 41st position
Gernot Rohr's side were eliminated in the group stages of the tournament managing just a win in three matches. Uruguay rose from No. 9 to No. 5, England moved up six places to No. 6 and Argentina dropped to No. 11.

Bitcoin Market Share at Highest This Year
The market valuation dropped from $218 billion to $193 billion (USD) in the hours to Tuesday, according to CoinMarketCap . While the price of Bitcoin continues to show several ups and downs - the markets continue to show faith in the currency.

Vaping is more harmful than first thought, study finds
E-cigarettes are a relatively new phenomenon and thus not much has been known about them and the harm they can cause. It believed that e-cigarettes can help one overcome the habit of smoking and should be allowed on prescription.

The alarming photo before bridge collapse that killed 39
The issue of transport in the area is now critical, given that the bridge was a major arterial route for an important port city. She posted online to say the family had since found a hotel to stay and managed to get food and clothes from the supermarket.

Turkey announces sharp tariffs on U.S. goods
Qatar said it would provide "a host of economic projects, investments and deposits" worth $15 billion to support Turkey's economy. The move sent the Turkish lira to a record low against the dollar and spurred declines in other emerging market currencies.

Banker Pushed $16M Manafort Loans Despite Risk, Jury Told
Calk had hoped to land a Cabinet-level position in the new Trump administration, a former bank executive testified Friday. Brennan even rated one loan for Manafort risky but doable in a memorandum used by regulators and the bank.

Donald Trump's Black Approval Rating Almost Double That of previous year
And it's harder than you would think. "There's one way to shut Donald Trump down, and that is just don't give him the oxygen". Longtime friend of Omarosa and TV host Jawn Murray is threatening the White House with more tapes if Trump keeps tweeting.

Trump revokes security clearance from ex-CIA director
Rostow also criticized Brennan for breaking precedent and speaking out against the current administration. The President's move is the second major sign that Brennan is about to be hoist on his own petard.

More than 30 people overdose at downtown CT park; synthetic pot suspected
Rick Fontana, director of emergency operations for New Haven said some overdoses were 'in multiples of 4-6 at a time'. The police chief says they firmly believe the person in custody is responsible for at least some of the overdoses.

Putin has not yet ordered retaliatory sanctions against United States
In its statement, the Russian Embassy in Washington accused the USA of failing to provide any justification for the action. The American side refused to answer our follow-up questions, claiming that the information is classified.

Pound US dollar exchange rate: GBP benefits from unemployment drop
If UK inflation is lower than expected, investors may become concerned that the BoE's August interest rate hike was unjustified. I think that we may be due for a bounce, but it's not reason enough to start putting money to work from what I see.

Subtropical Storm 'Not A Threat To Bermuda'
The term "subtropical" means the system now lacks the symmetrical characteristics of most tropical storms. As early as Thursday however, the National Hurricane Center expects Ernesto to no longer be tropical.

Pearl Jam poster of burning White House blasted by Republicans
A spokesman for the Democratic candidate said his team did not like the poster and that they "don't condone violence of any kind". Pearl Jam's "Rock2Vote" concert in Missoula on Monday was staged independently of the campaign, with a focus on voter turnout.

Kerala's Kochi Airport Closed Till Saturday, Runway Flooded
The tourist town of Munnar is virtually inundated after shutters of the Idukki, Mullaperiyar and Mattuppetty dams were opened. A resurgent monsoon brought Kerala to its knees on Wednesday, with the State tottering under the worst floods in its history.

Roquan Smith Ends Holdout With Bears
Depending on how Smith is doing in terms of physical condition, he could appear in the team's preseason game in Denver on Saturday.