Canopy shares fall after Constellation Brands says no plans for more investment

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Shares of Canopy Growth Corp. closed down almost 10 per cent Friday after global alcohol giant Constellation Brands Inc. said it did not plan to make any more cash contributions to the cannabis firm.

Constellation Brands made the comment in a U.S. regulatory filing where it said it expects to record a comparable nine month net loss of US$125.4 million in its Canopy investment.

Beyond the warrants, Constellation said it does not plan any further cash contributions to the company as it says Canopy is adequately capitalized with more than $2.7 billion in cash and marketable securities as of Sept. 30. In June, the booze brand said it was "not pleased" with Canopy's earnings after a wider-than-expected net loss. A week later company founder and CEO Bruce Linton was forced out of his position, and the company.

The same month, Canopy reported a $1.28-billion loss or $3.70 per share for the three months ended June 30, mainly due to a non-cash loss of $1.18 billion on the extinguishment of warrants held by Constellation.

 

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Legal pot is a joke. Double the price. Have as good. Ten times the non recyclable plastic.

Why wont CTV report this? Its called bias. Biden actually brags about being corrupt

Canada is doomed.

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