Thursday, October 9, 2025

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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.

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