Constellation Brands Inc (NYSE:STZ), the maker of Corona beer, is upping its investment in cannabis with a multi-billion dollar investment. The beer producer is investing US$4bn in Canadian cannabis company Canopy Growth Corp (NYSE:CGC, TSX:WEED).
Constellation’s latest investment brings its stake in the company to 38%. The company held a 9.9% stake in October 2017 with the option for future investments.
Shares of Canopy Growth jumped nearly 50% to US$36.48 in early trading on the news, reversing Tuesday's downward trend after posting less-than-stellar quarterly results.
"Over the past year, we've come to better understand the cannabis market, the tremendous growth opportunity it presents, and Canopy's market-leading capabilities in this space," said Constellation Brands CEO Rob Sands in a press release.
Constellation Brands shares fell more than 2% to US$216.50 in pre-market trading.