Constellation Brands, the producer of Corona is making a $4B bet on marijuana, investing in Canopy Growth, a Canadian cannabis manufacturer.
The investment gives Constellation a38% stake
in Canopy. The brand and many others speculate that the booming
Canadian industry will be lucrative in the States once companies like
Constellation are guessing will be legalized nationwide in the US before
long.
Canopy stocks rose 30% during Wednesday trading on
the news. Constellation dropped 6.1%, but if things pan out,
Constellation has the opportunity to buy 139.7M more shares over the
next three years, or the equivalent in another $5B in funding.
(BroBible.com)
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