Marijuana Stocks News: Why Canopy Growth Shares Are Soaring Today




 

Canopy Growth (NYSE:CGC) is leading marijuana stocks news today with a major investment from Constellation Brands (NYSE:STZ).

Source: Shutterstock

The investment from Constellation Brands that is rocking the marijuana stocks news circuit today comes in at a total of $4 billion. This investment will have the company buying a total of 104.5 million shares of CGC stock directly from the company.

The decision to purchase the shares of CGC stock will give Constellation Brands a 38% stake in the company, in combination with its previous ownership. STZ will be acquiring each of the new shares for C$48.60. This represents a roughly 51% premium to the stock's closing price on Aug. 14, 2018.

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

Canopy Growth says that the investment will immediately give it $4 billion in funds to work with. The company says that it plans to use this money to grow its business in emerging recreational cannabis markets.

Canopy Growth's focus on new markets means that the funds won't go toward its Canadian business, which is already mature. Instead, the company notes that the funds will be used to grow its business in 30 other countries. The U.S. is one of the countries that CGC will focus on.

"Through this investment, we are selecting Canopy Growth as our exclusive global cannabis partner," Rob Sands, CEO of Constellation Brands, said in a statement. "Over the past year, we've come to better understand the cannabis market, the tremendous growth opportunity it presents, and Canopy's market- leading capabilities in this space. We look forward to supporting Canopy as they extend their recognized global leadership position in the medical and recreational cannabis space."

CGC stock was up 29% and STZ stock was down 7% as of noon Wednesday.

As of this writing, William White did not hold a position in any of the aforementioned securities.

Compare Brokers

The post Marijuana Stocks News: Why Canopy Growth Shares Are Soaring Today appeared first on InvestorPlace.

COMMENTS

More Related News

Tilray Leapfrogs Aurora Cannabis and Canopy Growth in the U.S. Hemp Market
Tilray Leapfrogs Aurora Cannabis and Canopy Growth in the U.S. Hemp Market

Tilray's acquisition of the world's largest hemp food company could give the Canadian marijuana producer an edge over its top rivals.

Aurora Cannabis and Canopy Growth Earnings Updates: What to Love and What to Loathe
Aurora Cannabis and Canopy Growth Earnings Updates: What to Love and What to Loathe

And what to look forward to based on the big Canadian marijuana growers' latest quarterly results.

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Economy

facebook
Hit "Like"
Don't miss any important news
Thanks, you don't need to show me this anymore.