- Canopy Growth announces plans to consolidate all US cannabis assets into a single entity, Canopy USA, and create a US holding company and fungible share structure designed to allow Canopy USA full ownership of US cannabis investments trigger and capitalize on opportunities in the US cannabis market
- Constellation Brands intends to convert its existing interest in Canopy Growth common stock into new exchangeable shares in order to protect Constellation’s shareholder value while maintaining an interest in Canopy Growth through non-voting and non-participating stock
- The transfer of ownership and the issuance of Canopy Growth warrants is consistent with Constellation’s focus on its core beer, wine and spirits businesses and capital allocation priorities, emphasizing a strong financial foundation, reinvestments in its core businesses and a return in value for its shareholders
VICTOR, NY, Oct. 25, 2022 (GLOBE NEWSWIRE) — Constellation Brands, Inc. STZ, a leading beverage alcohol company, announced today that its indirect, wholly owned subsidiaries, Greenstar Canada Investment Limited Partnership (“Greenstar”) and CBG Holdings LLC (“CBG”), have entered into a consent agreement (the “Consent”). ) with Canopy Growth Corporation (“Canopy”) providing its consent to a proposed corporate transaction (the “Transaction”) by Canopy to combine its US cannabis assets in a newly formed entity (“Canopy USA”) consolidate. Canopy holds only non-voting, non-participating exchangeable shares of Canopy USA that are convertible into Canopy USA common stock. Third party investors will own 100% of Canopy USA common stock.
“We believe the conversion of our ownership interests will maintain Constellation’s ability to realize the potential benefit of our investment in Canopy,” said Bill Newlands, President and CEO of Constellation. “At the same time, this transaction and the return of our warrants are expected to reduce the impact on our equity in…
