Constellation Brands invests $4bn in Canada’s Canopy Growth

By sarahako ako

The Canada-based medical marijuana company, Canopy Growth, has announced a deal with the owner of Corona beer, Constellation Brands, that will see the US firm invest $4bn into Canada’s biggest producer of cannabis, BBC News reports.

The deal between the two global companies will become the largest investment in the industry to date.

Canopy will aim to broaden its business reach following the investment which will see it expand “in almost 30 countries that are pursuing a federally permissible medical cannabis programme.”

The Canadian company currently manufactures cannabis-based oils and soft gel caps, in addition with other products.

See more:

With the fresh injection of funds, Canopy will increase its selection of products to include edible bars, pre-rolled items and inhalers.

The firm also hopes to make a cannabinoid-based medicine that will offer a more secure alternative to treat anxiety, pain, sleeplessness and psoriasis.

Canopy's chief executive, Bruce Linton, on an investment call said: “This [deal] marks the end of the warm-up in our sector... it's fully go-time.”

Following news of the agreement, it was revealed that Canopy’s Toronto-listed stock rose 30%.

The two companies have collaborated previously when in 2017, Constellation invested $200mn in Canopy to offer a non-alcoholic cannabis-based beverage.

Share

Featured Articles

PwC's Kathryn Kaminsky – the role of boards on social issues

As Vice Chair Trust Solutions Co-Leader at PwC, Kathryn Kaminsky says boards play an important role in helping businesses take action on social issues

Why your business needs a Chief Transformation Officer

Responsible for driving growth and change, the Chief Transformation Officer is the latest addition to the C-suite as business undergoes major change

12 top AI and ML trends for the enterprise in 2023 – Dataiku

With 2023 likely to be a huge year for AI, experts from AI platform provider Dataiku deliver their enterprise AI and ML trends for the year ahead

From NYC to Hong Kong, the rise of the private members' club

Leadership & Strategy

Meet the CEO: Jill Stelfox of Panzura, exclusive interview

Leadership & Strategy

The best Michelin-starred restaurants that are meat-free

Sustainability