Constellation Brands to Acquire Minority Stake in Canopy Growth Corporation
October 30 2017 - 6:30AM
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 BrandsConstellation 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 CorporationCanopy 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 StatementsThis 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.
CONTACTSMedia Mike
McGrew: 773-251-4934Amy Martin: 585-678-7141
Investor RelationsPatty Yahn-Urlaub:
585-678-7483Bob Czudak: 585-678-7170
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