Sunday, September 14, 2025

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

Video Articles

Soma Gold Q2 Earnings: Production Drops Amid Growth Effort

Guanajuato Q2 Earnings: Things Are Going Backwards

Electric Metals: The Sole US Domestic Source Of A Critical Mineral?

Recommended

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Goliath Resources Hits 18.58 g/t Gold Over 5.00 Metres At Surebet

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

Series of Cannabis Producers Announce New Brand Offerings for Canadian and US Markets

This morning, a number of cannabis issuers announced developments on the branding front. With second...

Thursday, December 12, 2019, 09:53:43 AM

Canopy Growth Finally Exercises Option To Acquire Acreage Holdings

Acreage Holdings (CSE: ACRG.A.U) is set to finally be acquired by Canopy Growth (TSX: WEED)....

Tuesday, June 4, 2024, 08:55:08 AM

Canopy Growth Jumps 81% On Renewed Sector Interest

Canopy Growth Corp (TSX: WEED), the embattled cannabis producer, has once again risen to the...

Monday, September 11, 2023, 04:19:52 PM

Canopy Growth Gets Hit With Multiple $0.00 Price Targets

When it rains it pours and Canopy Growth Corp. (TSX: WEED) is finding that out...

Thursday, July 6, 2023, 02:22:00 PM