The brewer has invested more than $4 billion in Canopy for a nearly 56% stake in the marijuana producer, banking on the proposed legalization of recreational weed in several countries.
Constellation, in its recent post-earnings call, told analysts it was not pleased with Canopy’s loss-making streak. Canopy has been investing heavily to diversify and expand its operations, including the launch of new products. Canopy also fired founder and co-Chief Executive Officer Bruce Linton in July, a move that is believed to be orchestrated by Constellation.
The brewer reported a loss of $1.30 per share in the first quarter compared with a profit of $3.77 a year ago, mainly due to a 20 cents per share loss related to Canopy.
This hurts my wallet very badly.
Ouch.