Introduction4 of the 5 stocks in the Canadian Cannabis Licensed Producers (LPs) Portfolio went up last week (+7.2% on average) ranging from + 12.4% to -1.6% and is now up 7.8% MTD (as of April 26th). The details are below:
- Latest news, commentary and/or analysis:
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Constellation Brands distances itself from cannabis company Canopy Growth
- Constellation Brands (STZ) has a 39% financial stake in Canopy Growth but has announced that it:
- converted its stake in Canopy to a new category of shares that:
- do not give it voting power
- or the ability to collect payments from Canopy.
- converted its stake in Canopy to a new category of shares that:
- It will no longer have representation on Canopy’s board to eliminate the impact to their equity in earnings
- and do not intend to deploy additional investment in Canopy going forward.
- The conversion of shares into the new category means that:
- there is no longer an outstanding balance owing under the Promissory Note,
- the Promissory Note has been cancelled,
- and that there will be an overall reduction in debt on the Company’s balance sheet in the amount of C$100 million.
- Behind this development is the expectation that this will:
- facilitate the Company’s entry into the U.S. cannabis market, particularly through its U.S.-domiciled holding company, Canopy USA, LLC
- and give it the ability to acquire additional assets, including Acreage Holdings, Inc. (OTC: ACRHF), Mountain High Products LLC, Wana Wellness LLC, The Cima Group LLC, and Lemurian Inc..
- Constellation Brands (STZ) has a 39% financial stake in Canopy Growth but has announced that it:
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Constellation Brands distances itself from cannabis company Canopy Growth
SummaryOn average, the Portfolio went UP 7.2% last week and is now UP 7.8% MTD.More By This Author:April Recap: Conservative “Cannabis” Stocks Portfolio Down 3%
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