FINANCIAL POST: CANOPY GROWth'S $5-BILLION CONSTELLATION BRANDS DEAL
Canopy’s transformative deal with Constellation Brands Inc., the maker of Corona beer, has given it legitimacy, clout and a cash hoard that has widened the gap with its competitors. The deal has boosted Canopy’s stock 56 per cent since Constellation’s $5 billion (US$3.8 billion) investment for a 38 per cent stake was announced last week. That brings its market value to $11 billion, in the same league as plane maker Bombardier Inc. and retailer Canadian Tire Corp. and about $3.7 billion more than its nearest competitor Aurora Cannabis Inc.
Canopy is now the biggest company on Canada’s increasingly pot-dominated health-care index, surpassing Bausch Health Cos., the former Valeant Pharmaceuticals, for the first time on Monday.
After the Constellation deal, Canopy will have 12 times more cash than any of its Canadian competitors and almost as much cash on hand as the approximately $7 billion that has been raised in the entire Canadian cannabis industry to date, according to Matt Bottomley, analyst at Canaccord Genuity Group Inc.
To continue reading, check the story on the Financial Post here.