One of the strongest “power couples” in the corporate cannabis scene have strengthened their business relationship even further.
Earlier in 2018, Constellation Brands (NYSE: STZ) made a major investment in Canopy Growth Corp (TSE: WEED)(NYSE: CGC) to help develop their own line of CBD-drinks for when the Canadian market legalizes CBD-consumables later in 2019.
Today, Canopy Growth further strengthened the relationship between its partner, announcing that they had appointed a new CFO who previously worked at Constellation Brands.
Mike Lee was chosen to be Canopy’s new CFO effective June 1st. The new appointment will begin once he has received a Health Canada security clearance, a stipulation required for all officers and directors in the cannabis company.
He brings a considerable amount of experience from the consumer goods and beverages industry, working with companies like PepsiCo before his stint in Constellation Brands. This experience will be quite useful to Canopy, who plans to launch a CBD-beverage line in the future.
“When I welcomed Tim four years ago, Canopy Growth had a market cap of $93 million, two partially licensed production sites in Ontario and a single acquisition under our belt. After more than 26 acquisitions, 8 financings worth over $6.2 billion, the sector’s first TSX and NYSE listings, and reaching a market cap of $21 billion, Tim exemplifies what it means to be a leader at Canopy Growth,” said Bruce Linton, Chairman and Co-CEO of Canopy Growth. “As Tim transitions roles, I am also pleased to elevate Mike into the acting CFO role. His philosophy, accomplishments and all-around track record give me confidence that the Company’s financial health and governance are in good hands. I look forward to working more closely with Mike, benefitting from his vision and expertise as the Company continues growing, both at home and abroad.”
The company’s current CFO, Tim Saunders, will continue to work as a strategic advisor in the areas of M&A, corporate financing, and other related areas.
Back in 2018, Constellation Brands made a massive $4 billion investment in Canopy Growth, making the Canadian cannabis giant as perhaps the best-positioned company to take advantage of the CBD-beverage market when it’s legalized.
While the official statement from the company said that this funding will be used for international expansion opportunities at the time, it’s pretty much a certainty that the duo is planning their own product offering in the beverage sector soon. Constellation Brands currently owns around 37 percent of Canopy Growth.
While an interesting piece of news that further strengthens the relationship between Canopy and Constellation Brands, shares of both companies didn’t react much in response to the announcement. Canopy Growth’s stock inched upwards around half a percent, while Constellation brands went up around one percent itself.
Canopy Growth Company Profile
Canopy Growth Corp through its subsidiaries is the licensed producer of medical marijuana in Canada. The company grows, produces and sells medical marijuana. It operates diverse brands and variety supported by over half million square feet of indoor and greenhouse marijuana production.
It sells medical marijuana under various brand names including Tweed, Bedrocan, and Mettrum. A majority of the revenue is derived from the sale of medical marijuana by Tweed and Bedrocan in Canada. – Warrior Trading News