Canadian cannabis stocks had a roller-coaster week, this week with extreme highs and lows but ended generally on a positive note.
The biggest news this week was the fact that Constellation Brands (NYSE:STZ) will spend C$5bln to boost its stake in Canopy Growth Corp (CSE:WEED), sending shares up 8.6% at C$44.18 on Friday. The company reported a quarterly C$90mln net loss on Tuesday.
READ: Canopy Growth reports quarterly earnings in-line with analyst expectations; net loss of C$90.9mln
For Canopy, Constellation Brands, the New York-based beverage company, announced it will spend about C$5bn (US$3.8bn) to boost its stake in Canopy Growth, in a bet that legalization will gain traction around the world. Constellation said that it would buy 104.5 million Canopy shares priced at C$48.60 each.
“This is rocket fuel,” said chief executive officer Bruce Linton, of Canopy in an earnings calls on Wednesday. “We’re going to be way more global.”
READ: Kaneh Bosom Biotechnology: experienced management, access to capital and a clear strategy paves the way for success for the cannabis company
Hiku Brands (CSE:HIKU) soared 9.9% at C$2.00.
The Horizons Marijuana Life Sciences Exchange Traded Fund, a group of marijuana stocks that trades on the Toronto Stock Exchange, rose 2.80%, to C$16.55.