Canopy Growth Corp (NYSE: CGC)
Canopy Growth ($CGC) skyrocketed on Wednesday morning following news that Constellation Brands committed an additional $4 billion investment as an expansion of their partnership.
Shares of $CGC were up over 30% in the premarket trading session after closing Tuesday at $24.62. Shares initially sold off at the open but have stabilized in the $30 price range.
Constellation Brands, brewer of Corona beer and distributor of Robert Mondavi wine, increased its position in $CGC by buying 104.5 million shares at $48.50, which is over 50% premium compared to Tuesday’s close. They now sit at about 38% ownership in Canopy Growth.
“Overall, we think Constellation’s increased stake in WEED/CGC (the largest investment to date in the cannabis space) is very positive and further accelerates another avenue of growth,” says Wells Fargo analyst Bonnie Herzog.
Canopy Growth is now up just over 23% on the year with current prices at $30.
