Corona Owner To Make $4 Billion Investment In Legal Marijuana

[burnin1]

From International Business News

Corona Owner To Make $4 Billion Investment In Legal Marijuana

By Andrew N. White

Corona beer owner Constellation Brands said it plans to give more of its money to a cannabis producing brand, marking the second investment the beer maker has poured into the legal marijuana industry.

The New York-based Constellation Brands announced on Wednesday that it looks to make an investment $4 billion into Canopy Growth. The agreement includes the option for the company to make future investments.

According to Reuters, Constellation is paying a 38 percent premium to Canopy’s five-day average price, which brings its stake in the company to 38 percent.

"Over the past year, we've come to better understand the cannabis market, the tremendous growth opportunity it presents, and Canopy's market-leading capabilities in this space," Constellation Brands CEO Rob Sands said in a statement.

The Toronto-based marijuana brand will use the investment funds to expand its product selection to include pre-rolled items, edible bars, and inhalers.

The news comes as more beer companies have been looking to get into the budding marijuana industry. Heineken-owned Lagunitas Brewing announced June 26 its cannabis-infused sparkling beverage would retail in select California areas.

In October, Constellation Brand invested nearly $200 million into Canopy in a deal to produce a non-alcoholic cannabis-based drink. The agreement included a 9.9 percent stake in the cannabis company, according to CNBC.

Founded in 1945 in Victor, New York, Constellation Brand makes and markets beer, wine, and spirits. Besides Corona, it produces also brands such as Ballast Point, Robert Mondavi, Kim Crawford, Ruffino, The Prisoner and SVEDKA Vodka, among others.

Canopy, the largest legal cannabis producer in Canada, has a market capitalization of C$8.9 billion ($6.76 billion), and Canopy CEO Bruce Linton told CNBC in June that he expects cannabis-based products to flourish within the next few years.

"By 2020 or 2021, there will be too much cannabis produced If I'm still selling primarily an ingredient, I have completely dropped the ball. You want to transform it," he said.

https://www.ibtimes.com/corona-owner-make-4-billion-investment-legal-marijuana-2709169

 

[Hackerman]

Kind of gives "Having a canna beer" a new meaning. LOL

I still see a problem with the fact that cannabis tastes like shit. LOL

 

[kaotik]

good ol marijuana monopoly.
"canada's going legal".. yeah if you have a few million, you can get in and try your hand.

disgusts me what we're doing. give the production to the greedbags who sold tainted medical pot.. can't wait to see the nova dosed crap they're gonna sell to rec users.

would've been much better had they turned the black market legit.. but nope, can't have competition or their rich buddies with no knowledge would fail.

 

[Hackerman]

Do you blame them? If I could make the rules to every game I played, I would. And, I would be an instant winner every time. LOL

We are definitely in a capitalist nation. Big money rules, for sure.

Still, we can always grow our own pot and make our own beer and grow our own food. The option is there if you want to put in the effort. Problem is, big business makes it soooooo easy. And the basic human being is sooooooo lazy. The 2 certainly feed each other.

So, will I go weed my veggie garden and tend my apple tress? Or, a happy meal and diet Coke? LOL Unfortunately, most of the modern world chooses the Happy Meal. LOL

Still, I am a beer drinker so I can't wait for this to come out. And, I drink Corona, so it's like staying home. LOL I'll bet it tastes like shit. LOL