After the marijuana legalisation craze started to peter out, investors have been looking for the next big story to drop to get an idea of where to invest. Now, it looks like that story has finally dropped.
Business Insider reports that:
On Monday, Constellation Brands — the owners of Corona and Modelo and the third-largest beer company in the US — announced it had acquired a 9.9% stake in cannabis holding company Canopy Growth. The beer giant paid $191 million for its stake in the largest legal marijuana producer in the world.
This is one of the largest partnerships that we have seen between a mainstream brand and a legitimate marijuana producer. The credibility and capital that this deal provides Canopy should go a long way in helping the Canadian company maintain its top spot in the cannabis industry.
CNBC reports that “Canopy Growth is the world’s largest publicly traded cannabis company, with a market valuation of 2.2 billion Canadian dollars.” However, the company has struggled much in the same way that other marijuana businesses have; they are still waiting for national legalisation before they can cash in on their market share. This is why the sale has huge ramifications for the company.
CNBC also reports that Constellation Brands CEO Rob Sands thinks that the United States is also well on the way to national legalisation. This is where the real money is to be made, as one of the world’s largest markets would be open to the pot business.
If you are interested in investing in the cannabis industry, take a look at Canopy Growth. They have made a name for themselves in the past and will likely continue to expand in the future thanks to this new partnership.
To read Business Insider’s article on Constellation’s purchase of a stake in Canopy, click here.
To read CNBC’s article on Constellation’s acquisition of a stake in Canopy, click here.
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