Constellation Brands completes $4bn investment in Canopy Growth

US-based alcohol beverage firm Constellation Brands has completed the C$5bn ($4bn) investment in Canadian cannabis company Canopy Growth.

The deal has been approved by Canopy Growth shareholders and also received regulatory approvals from the Canadian government under the Investment Canada Act.

Constellation Brands CEO Rob Sands said: “We’re excited to expand our strategic partnership with Canopy Growth and to begin helping them build the global scale needed to win long-term.

“The global cannabis market presents a significant growth opportunity and Canopy Growth is well-positioned to establish a strong leadership position in this fast-evolving category.”

The investment will be used by the Canopy Growth to expand its presence in more than 30 countries, which are currently pursuing federally permissible medical cannabis programmes.

It will also focus on establishing a new platform for supplying new recreational adult-use markets as cannabis becomes legal in markets around the world.

Canopy Growth chairman and co-chief executive officer Bruce Linton said: “Our cash position opens up a world of opportunity for us.

“Relative to our valuation, we have never been in a better position to create shareholder value. This investment was a landmark moment for the entire sector when it was announced.

“Now that the capital is Canopy’s to deploy, we’re going to quickly get to work increasing our lead by adding strategic assets around the world.”

The deal which was announced in August this year, where Constellation Brands announced its plans to increase its stake in Canopy Growth by acquiring 104.5 million shares directly from the company.