Constellation Brands to Acquire Minority Stake in Canopy Growth Corporation
(Thomson Reuters ONE) -
The investment and relationship will lend insights on the emerging cannabis
market and evolving consumer trends
VICTOR, N.Y., Oct. 30, 2017 (GLOBE NEWSWIRE) -- Constellation Brands (NYSE:STZ)
(NYSE:STZ.B), a leading beverage alcohol company, today announced that it has
signed an agreement to acquire a minority stake in Ontario, Canada-based Canopy
Growth Corporation, a well-respected public company and leading provider of
medicinal cannabis products.
This investment and relationship is consistent with Constellation Brands' long-
term strategy to identify, meet and stay ahead of evolving consumer trends and
market dynamics, while maintaining focus on its core total beverage alcohol
business. Constellation has no plans to sell any cannabis products in the U.S.
or any other market unless or until it is legally permissible to do so at all
government levels.
"Canopy Growth has a seasoned leadership team that understands the legal,
regulatory and economic landscape for an emerging market that is predicted to
become a significant consumer category in the future," said Constellation Brands
President and Chief Executive Officer, Rob Sands. "Our company's success is the
result of our focus on identifying early stage consumer trends, and this is
another step in that direction."
Founded in 2014, Canopy Growth Corporation is one of the earliest commercial
players in Canada's legal cannabis market. The company is currently traded on
the Toronto Stock Exchange (TSX) under the symbol "WEED" and has a market cap of
more than C$2 billion. The company owns a collection of diverse brands serving
customers in Canada and international markets where medicinal cannabis products
are legal. In conjunction with this investment, both companies intend to enter
into an agreement to exchange knowledge and expertise.
"We are thrilled to have the backing of such a well-established and respected
organization such as Constellation Brands," said Bruce Linton, Chairman and
Chief Executive Officer, Canopy Growth Corporation. "We look forward to working
with the Constellation Brands team to access their deep knowledge and experience
in growing brands as we continue to expand our business."
The investment is expected to approximate C$245 million representing an
ownership interest of 9.9% of Canopy Growth Corporation, plus warrants which
give Constellation Brands the option to purchase an additional ownership
interest in the future. The transaction is expected to close during the
Company's third quarter of fiscal 2018.
About Constellation Brands
Constellation Brands (NYSE:STZ) (NYSE:STZ.B), a Fortune 500(®) company, is a
leading international producer and marketer of beer, wine and spirits with
operations in the U.S., Mexico, New Zealand, Italy and Canada. Based in Victor,
N.Y., the company believes that industry leadership involves a commitment to
brand building, our trade partners, the environment, our investors and to
consumers around the world who choose our products when celebrating big moments
or enjoying quiet ones. Founded in 1945, Constellation has grown to become a
significant player in the beverage alcohol industry with more than 100 brands in
its portfolio; about 40 wineries, breweries and distilleries; and approximately
9,000 talented employees. We express our company vision: to elevate life with
every glass raised.
To learn more, follow us on Twitter (at)cbrands and visit www.cbrands.com.
About Canopy Growth Corporation
Canopy Growth is a world-leading diversified cannabis company, offering distinct
brands and curated cannabis varieties in dried, oil and capsule forms. Through
its wholly-owned subsidiaries, Canopy Growth operates numerous state-of-the-art
production facilities with over half a million square feet of GMP-certified
indoor and greenhouse production capacity, all to an unparalleled level of
quality assurance procedures and testing. Canopy Growth has established
partnerships with leading sector names in Canada and abroad, with interests and
operations spanning four continents. The Company is proudly dedicated to
educating healthcare practitioners, providing consistent access to high quality
cannabis products, conducting robust clinical research, and furthering the
public's understanding of cannabis. For more information
visit www.canopygrowth.com.
Forward-Looking Statements
This news release contains forward-looking statements. All statements other than
statements of historical fact are forward-looking statements. The words
"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. The
transaction between Constellation Brands and Canopy Growth Corporation is
subject to the satisfaction of certain closing conditions, including receipt of
any necessary regulatory approvals. There can be no assurance that any
transaction between Constellation Brands and Canopy Growth Corporation will
occur or will occur on the timetable contemplated hereby. All forward-looking
statements speak only as of the date of this news release and Constellation
Brands undertakes no 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, including completion of the announced
transaction; the accuracy of all projections; and other factors and
uncertainties disclosed from time-to-time in Constellation Brands, Inc.'s
filings with the Securities and Exchange Commission, including its Annual Report
on Form 10-K for the fiscal year ended February 28, 2017, which could cause
actual future performance to differ from current expectations.
CONTACTS
Media
Mike McGrew: 773-251-4934
Amy Martin: 585-678-7141
Investor Relations
Patty Yahn-Urlaub: 585-678-7483
Bob Czudak: 585-678-7170
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Constellation Brands, Inc via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 30.10.2017 - 11:30 Uhr
Sprache: Deutsch
News-ID 565739
Anzahl Zeichen: 7746
contact information:
Town:
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Kategorie:
Business News
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"Constellation Brands to Acquire Minority Stake in Canopy Growth Corporation"
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