Friday, May 30, 2025

Latest

Canopy Growth Sees Constellation Brands Exercise $245 Million In Warrants

Constellation Brands (NYSE: STZ) has exercised the much anticipated warrants it holds in Canopy Growth Corp (TSX: WEED) (NYSE: CGC), increasing its ownership in the cannabis giant by 5.1% to an overall 38.6% ownership in the firm.

The exercise of the warrants has been much anticipated as a result of previous comments made by the beverage alcohol giant, wherein the company firmly stated that they would be making no more cash contributions to Canopy Growth. At the time, they did leave the single caveat that they “will evaluate exercise of each of these warrants immediately prior to expiration.” Much speculation existed on whether Constellation would elect to exercise today as a result.

Today’s exercise of these options were inline with that policy, given that the warrants which were originally issued November 2, 2017 were to expire today if not exercised.

In total, 18,876,901 warrants with a price of $12.9783 were exercised, providing Canopy Growth with gross proceeds of approximately $245 million. Given the closing price of Canopy Growth on the TSX today of $21.43, Constellation is currently up a cool $159.5 million on today’s investment. The company however is down significantly on its overall investment into the company, with the warrants effectively enabling the firm to “average down” its purchase price.

Constellation Brands now currently holds 142,253,802 common shares, 139,745,453 warrants and C$200,000,000 in senior notes of the company. If Constellation were to fully exercise its warrants and convert its senior notes, it would hold an interest of 55.8% in Canopy Growth.


Information for this briefing was found via Sedar, Constellation Brands and Canopy Growth Corp. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

2 Responses

Leave a Reply

Video Articles

How To Profit From $3300 Gold? An Inside Look At A Massive 300,000 Oz Project | Martino De Ciccio

We’re At The Start of a Great Silver Boom | Ross McElroy & Andy Bowering – Apollo Silver Corp

Equinox Gold Q1 Earnings: When Everything Goes Wrong

Recommended

ESGold Begins Concentration Tests Ahead Of First Production

Sterling Metals Hits 0.21% Copper Over 482.8 Metres In First Drilling At Soo Copper project

Related News

Canopy Growth Records Another Huge Loss With Sale Of This Works

Canopy Growth (TSX: WEED) has recorded another loss as they attempt to cut back their...

Monday, December 18, 2023, 09:46:20 AM

Canopy Growth: Canaccord Lowers Price Target After “Uninspiring Quarter”

Last week, Canopy Growth Corp (TSX: WEED) (NASDAQ: CGC) reported their first fiscal quarter of...

Thursday, August 12, 2021, 10:54:00 AM

Canopy Growth: Analysts Raise Price Targets Following Q2 Results

On Monday, Canopy Growth (TSX: WEED) (NYSE: CGC) reported its fiscal second quarter 2021 financial...

Thursday, November 12, 2020, 01:17:00 PM

Canopy Growth Divests Stake in AusCann Group Holdings

Canopy Growth Corp (TSX: WEED) (NYSE: CGC) has disposed of its 13.2% stake in AusCann...

Sunday, October 13, 2019, 10:45:16 PM

Canopy’s Quarter in Charts

Whenever there’s a negative margin, those of us in the financial content biz like to...

Sunday, November 17, 2019, 08:58:03 AM