VICTOR, NY and SMITHS FALLS, ON, May
1, 2020 /PRNewswire/ - Constellation Brands, Inc.
("Constellation Brands") (NYSE: STZ) and (NYSE:
STZ.B), a leading beverage alcohol company, and Canopy Growth
Corporation ("Canopy Growth") (TSX: WEED) (NYSE:
CGC), a leading diversified cannabis company, today announced the
exercise by Greenstar Canada Investment Limited Partnership, an
indirect, wholly-owned subsidiary of Constellation Brands, of an
aggregate of 18,876,901 warrants to purchase common shares of
Canopy Growth.
The warrants, which were originally issued on November 2, 2017, were exercised at an exercise
price of C$12.9783 per common share
for an aggregate of approximately C$245
million. Upon issuance, the common shares represented
approximately 5.1% of the issued and outstanding common shares of
Canopy Growth. As a result of the acquisition of new common shares,
Constellation Brands now indirectly holds, in the aggregate,
142,253,802 common shares, 139,745,453 warrants to purchase common
shares and C$200,000,000 principal
amount of senior notes. Collectively, the common shares
increase Constellation Brands' ownership of Canopy Growth to 38.6%
of the issued and outstanding common shares. Assuming full
exercise of all remaining warrants and full conversion of the notes
(but for these purposes excluding any effect from a Canopy Growth
exercise of its right to acquire Acreage Holdings, Inc. pursuant to
its option under the plan of arrangement previously announced on
June 27, 2019) Constellation Brands
would own approximately 55.8% of the issued and outstanding common
shares of Canopy Growth.
"While global legalization of cannabis is still in its infancy,
we continue to believe the long-term opportunity in this evolving
market is substantial," said Bill
Newlands, president and chief executive officer,
Constellation Brands. "Canopy is best positioned to win in the
emerging cannabis space and we are confident in the strategic
direction of the company under David
Klein and his team."
"This additional investment validates the work our team has done
since attracting the initial investment in 2017. It also
strengthens our ability to pursue the immense market and product
opportunities available to Canopy in Canada, the U.S. and other key global
markets," said David Klein, chief
executive officer, Canopy Growth.
Constellation Brands may from time to time acquire or dispose of
common shares or other securities of Canopy Growth or exercise its
warrants in the future, either on the open market or in private
transactions, in each case, depending on a number of factors,
including general market and economic conditions and other
available investment opportunities. Depending on market conditions,
general economic and industry conditions, Canopy Growth's business
and financial condition and/or other relevant factors,
Constellation Brands may develop other plans or intentions in the
future.
A copy of the early warning report filed in connection with this
press release will be available on Canopy Growth's profile on SEDAR
at www.sedar.com or may be obtained by contacting
Constellation Brands' Investor Center at 1-888-922-2150.
About Constellation Brands
At Constellation Brands
(NYSE: STZ and STZ.B), our mission is to build brands that people
love because we believe sharing a toast, unwinding after a day,
celebrating milestones, and helping people connect, are Worth
Reaching For. It's worth our dedication, hard work, and the bold
calculated risks we take to deliver more for our consumers, trade
partners, shareholders, and communities in which we live and work.
It's what has made us one of the fastest-growing large CPG
companies in the U.S. at retail, and it drives our pursuit to
deliver what's next.
Today, we are a leading international producer and marketer of
beer, wine, and spirits with operations in the U.S., Mexico, New
Zealand, and Italy. Every
day, people reach for our high-end, iconic imported beer brands
such as Corona Extra, Corona Light,
Corona Premier, Modelo Especial, Modelo Negra, and Pacifico, and
our high-quality premium wine and spirits brands, including the
Robert Mondavi brand family, Kim
Crawford, Meiomi, The Prisoner brand family, SVEDKA Vodka,
Casa Noble Tequila, and High West Whiskey.
But we won't stop here. Our visionary leadership team and
passionate employees from barrel room to boardroom are reaching for
the next level, to explore the boundaries of the beverage alcohol
industry and beyond. Join us in discovering what's Worth Reaching
For.
To learn more, follow us on Twitter @cbrands and visit
www.cbrands.com.
About Canopy Growth Corporation
Canopy Growth (TSX:WEED, NYSE:CGC) is a world-leading
diversified cannabis, hemp and cannabis device company, offering
distinct brands and curated cannabis varieties in dried, oil and
Softgel capsule forms, as well as medical devices through Canopy
Growth's subsidiary, Storz & Bickel GMbH & Co. KG. From
product and process innovation to market execution, Canopy Growth
is driven by a passion for leadership and a commitment to building
a world-class cannabis company one product, site and country at a
time. Canopy Growth has operations in over a dozen countries across
five continents.
Canopy Growth's medical division, Spectrum Therapeutics is
proudly dedicated to educating healthcare practitioners, conducting
robust clinical research, and furthering the public's understanding
of cannabis, and has devoted millions of dollars toward cutting
edge, commercializable research and IP development. Spectrum
Therapeutics sells a range of full-spectrum products using its
colour-coded classification Spectrum system as well as single
cannabinoid Dronabinol under the brand Bionorica Ethics.
Canopy Growth operates retail stores across Canada under its award-winning Tweed and Tokyo
Smoke banners. Tweed is a globally recognized cannabis brand which
has built a large and loyal following by focusing on quality
products and meaningful customer relationships.
From our historic public listing on the Toronto Stock Exchange
and New York Stock Exchange to our continued international
expansion, pride in advancing shareholder value through leadership
is engrained in all we do at Canopy Growth. Canopy Growth has
established partnerships with leading sector names including
cannabis icons Snoop Dogg and Seth
Rogen, breeding legends DNA Genetics and Green House Seeds,
and Fortune 500 alcohol leader Constellation Brands, to name but a
few. Canopy Growth operates eleven licensed cannabis production
sites with over 10.5 million square feet of production capacity,
including over one million square feet of GMP certified production
space. 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, including
statements about Constellation Brands' future ownership of shares
of Canopy Growth, the possibility that Canopy Growth might exercise
its right to acquire Acreage Holdings, Inc. and Canopy Growth's
ability to continue its pursuit of market opportunities and
success. The words "if", "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. All
forward-looking statements speak only as of the date of this news
release and neither Constellation Brands nor Canopy Growth
undertakes any 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 and other factors and uncertainties disclosed from
time-to-time in Constellation Brands's filings with the Securities
and Exchange Commission, including its Annual Report on Form 10-K
for the fiscal year ended February 29,
2020 and in Canopy Growth'sfilings with the Canadian
Securities Administration, including in Canopy Growth's Annual
Information Form filed on SEDAR on June 25,
2019 under the heading "Risk Factors", or with the United
States Securities Exchange Commission, which could cause actual
future performance to differ from current expectations.
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SOURCE Canopy Growth Corporation