Innovative $5 Billion Transaction In The Cannabis Sector

A deal that defies conventional classification

Just last week, Canopy Growth Corporation (TSX: WEED, NYSE: CGC) and Constellation Brands, Inc. (NYSE: STZ and STZ.B) announced the completion of a transaction that was a hybrid: a very large private placement of equity combined with features of a public M&A transaction, as well as aspects of a strategic partnership or joint venture. This innovative transaction was notable for at least three reasons:

1. It was a Financing: the Largest Ever Cannabis Equity Issue. In what is believed to be the largest-ever equity financing in the cannabis industry globally, Constellation Brands, a leading international producer and marketer of beer, wine and spirits, invested more than C$5 billion in cash to acquire 104.5 million newly-issued common shares from Canopy Growth, a leading diversified cannabis and hemp company, based in Smith Falls, Ontario with operations in 12 countries. The targeted private placement was priced at C$48.60