Constellation Brands, Inc. (
“Constellation
Brands”) (NYSE: STZ and STZ.B), a leading beverage alcohol
company, and Canopy Growth Corporation (“
Canopy
Growth”) (TSX: WEED, NYSE: CGC), a leading diversified
cannabis company, today announced the exercise by Greenstar Canada
Investment Limited Partnership, an indirect, wholly-owned
subsidiary of Constellation Brands, of an aggregate of 18,876,901
warrants to purchase common shares of Canopy Growth.
The warrants, which were originally issued on November 2, 2017,
were exercised at an exercise price of C$12.9783 per common share
for an aggregate of approximately
C$245 million. Upon issuance, the common
shares represented approximately 5.1% of the issued and outstanding
common shares of Canopy Growth. As a result of the acquisition of
new common shares, Constellation Brands now indirectly holds, in
the aggregate, 142,253,802 common shares, 139,745,453 warrants to
purchase common shares and C$200,000,000 principal amount of senior
notes. Collectively, the common shares increase Constellation
Brand’s ownership of Canopy Growth to 38.6% of the issued and
outstanding common shares. Assuming full exercise of all remaining
warrants and full conversion of the notes (but for these purposes
excluding any effect from a Canopy Growth exercise of its
right to acquire Acreage Holdings, Inc. pursuant to its option
under the plan of arrangement previously announced on June 27,
2019) Constellation Brands would own approximately 55.8% of
the issued and outstanding common shares of Canopy Growth.
“While global legalization of cannabis is still in its infancy,
we continue to believe the long-term opportunity in this evolving
market is substantial,” said Bill Newlands, president and chief
executive officer, Constellation Brands. “Canopy is best positioned
to win in the emerging cannabis space and we are confident in the
strategic direction of the company under David Klein and his
team.”
"This additional investment validates the work our team has done
since attracting the initial investment in 2017. It also
strengthens our ability to pursue the immense market and product
opportunities available to Canopy in Canada, the U.S. and other key
global markets," said David Klein, chief executive officer, Canopy
Growth.
Constellation Brands may from time to time acquire or dispose of
common shares or other securities of Canopy Growth or exercise its
warrants in the future, either on the open market or in private
transactions, in each case, depending on a number of factors,
including general market and economic conditions and other
available investment opportunities. Depending on market conditions,
general economic and industry conditions, Canopy Growth’s business
and financial condition and/or other relevant factors,
Constellation Brands may develop other plans or intentions in the
future.
A copy of the early warning report filed in connection with this
press release will be available on Canopy Growth’s profile on SEDAR
at www.sedar.com or may be obtained by contacting Constellation
Brands’ Investor Center at 1-888-922-2150.
About Constellation BrandsAt Constellation
Brands (NYSE: STZ and STZ.B), our mission is to build brands that
people love because we believe sharing a toast, unwinding after a
day, celebrating milestones, and helping people connect, are Worth
Reaching For. It’s worth our dedication, hard work, and the bold
calculated risks we take to deliver more for our consumers, trade
partners, shareholders, and communities in which we live and work.
It’s what has made us one of the fastest-growing large CPG
companies in the U.S. at retail, and it drives our pursuit to
deliver what’s next.
Today, we are a leading international producer and marketer of
beer, wine, and spirits with operations in the U.S., Mexico, New
Zealand, and Italy. Every day, people reach for our high-end,
iconic imported beer brands such as Corona Extra, Corona Light,
Corona Premier, Modelo Especial, Modelo Negra, and Pacifico, and
our high-quality premium wine and spirits brands, including the
Robert Mondavi brand family, Kim Crawford, Meiomi, The Prisoner
brand family, SVEDKA Vodka, Casa Noble Tequila, and High West
Whiskey.
But we won’t stop here. Our visionary leadership team and
passionate employees from barrel room to boardroom are reaching for
the next level, to explore the boundaries of the beverage alcohol
industry and beyond. Join us in discovering what’s Worth Reaching
For.
To learn more, follow us on Twitter @cbrands and visit
www.cbrands.com.
About Canopy Growth CorporationCanopy Growth
(TSX:WEED, NYSE:CGC) is a world-leading diversified cannabis, hemp
and cannabis device company, offering distinct brands and curated
cannabis varieties in dried, oil and Softgel capsule forms, as well
as medical devices through Canopy Growth’s subsidiary, Storz &
Bickel GMbH & Co. KG. From product and process innovation to
market execution, Canopy Growth is driven by a passion for
leadership and a commitment to building a world-class cannabis
company one product, site and country at a time. Canopy Growth has
operations in over a dozen countries across five continents.
Canopy Growth’s medical division, Spectrum Therapeutics is
proudly dedicated to educating healthcare practitioners, conducting
robust clinical research, and furthering the public’s understanding
of cannabis, and has devoted millions of dollars toward cutting
edge, commercializable research and IP development. Spectrum
Therapeutics sells a range of full-spectrum products using its
colour-coded classification Spectrum system as well as single
cannabinoid Dronabinol under the brand Bionorica Ethics.
Canopy Growth operates retail stores across Canada under its
award-winning Tweed and Tokyo Smoke banners. Tweed is a globally
recognized cannabis brand which has built a large and loyal
following by focusing on quality products and meaningful customer
relationships.
From our historic public listing on the Toronto Stock Exchange
and New York Stock Exchange to our continued international
expansion, pride in advancing shareholder value through leadership
is engrained in all we do at Canopy Growth. Canopy Growth has
established partnerships with leading sector names including
cannabis icons Snoop Dogg and Seth Rogen, breeding legends DNA
Genetics and Green House Seeds, and Fortune 500 alcohol leader
Constellation Brands, to name but a few. Canopy Growth operates
eleven licensed cannabis production sites with over 10.5 million
square feet of production capacity, including over one million
square feet of GMP certified production space. For more information
visit www.canopygrowth.com.
Forward-Looking StatementsThis news release
contains forward-looking statements. All statements other than
statements of historical fact are forward-looking statements,
including statements about Constellation Brands’ future ownership
of shares of Canopy Growth, the possibility that Canopy Growth
might exercise its right to acquire Acreage Holdings, Inc. and
Canopy Growth’s ability to continue its pursuit of market
opportunities and success. The words “if”,“expect,” “intend” and
similar expressions are intended to identify forward-looking
statements, although not all forward-looking statements contain
such identifying words. These statements may relate to business
strategy, future operations, prospects, plans and objectives of
management, as well as information concerning expected actions of
third parties. All forward-looking statements involve risks and
uncertainties that could cause actual results to differ materially
from those set forth in, or implied by, such forward-looking
statements. The forward-looking statements are based on
management's current expectations and should not be construed in
any manner as a guarantee that such results will in fact occur or
will occur on the timetable contemplated hereby. All
forward-looking statements speak only as of the date of this news
release and neither Constellation Brands nor Canopy Growth
undertakes any obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise. In addition to risks and uncertainties associated
with ordinary business operations, the forward-looking statements
contained in this news release are subject to other risks and
uncertainties and other factors and uncertainties disclosed from
time-to-time in Constellation Brands’ filings with the Securities
and Exchange Commission, including its Annual Report on Form 10-K
for the fiscal year ended February 29, 2020 and in Canopy Growth’s
filings with the Canadian Securities Administration, including in
Canopy Growth’s Annual Information Form filed on SEDAR on June 25,
2019 under the heading “Risk Factors”, or with the United States
Securities Exchange Commission, which could cause actual future
performance to differ from current expectations.
CONTACTS:CONSTELLATION
BRANDS MEDIA CONTACTSMichael McGrew,
(773) 251-4934 / michael.mcgrew@cbrands.comAmy
Martin, (585) 678-7141 /
amy.martin@cbrands.comCONSTELLATION BRANDS INVESTOR
RELATIONS CONTACTSPatty Yahn-Urlaub,
(585) 678-7483 / patty.yahn-urlaub@cbrands.comBob
Czudak, (585) 678-7170/
bob.czudak@cbrands.comCANOPY GROWTH MEDIA
CONTACTSJordan Sinclair, (613) 769-4196 /
jordan.sinclair@canopygrowth.comCANOPY GROWTH INVESTOR
RELATIONS CONTACTSTyler Burns, (613)
697-0367 / tyler.burns@canopygrowth.comJudy Hong,
(646) 483-0945 / judy.hong@canopygrowth.com
A downloadable PDF copy of this news release enhanced with
multimedia links can be found
here: http://ml.globenewswire.com/Resource/Download/785a44d2-acbe-4b19-b6c5-fbcd9667302b
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