“U.S.-listed shares of Canada-based Canopy Growth Corp. soared almost 30% Wednesday, after liquor seller Constellation Brands Inc. said it will invest another CAD $5 billion, or about $4 billion, in the diversified cannabis company.”
What does this mean?
Investment continues to be poured into Canadian marijuana companies listed on US stock exchanges (See Tilray listing on NASDAQ). This most recent investment is likely do to the already $700 million return that Constellation has earned from its previous investment into Canopy of $100 million. Obviously the alcohol industry views the marijuana industry as a threat and Constellation is taking big steps to ensure it is diversifying in an effort to create further shareholder value. This investment further emphasizes the missed opportunities for many cannabis companies operating here in the US due to the fact that cannabis is still federally illegal.