YASTESTThe 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 @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
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Relations
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