As the cannabis sector continues to expand and grow other industries have taken notice and started dipping their toes on investment possibilities. Case in point, on Monday (October 30), Constellation Brands (NYSE:STZ), a giant in the alcohol production industry, announced an investment deal with one of the leading cannabis LPs in Canada, Canopy Growth (TSX:WEED).
According to the announcement, Constellation will receive 9.9 percent equity of Canopy for $245 million. Canopy also told investors it had issued 18,876,901 warrants to an affiliate of Constellation as part of the agreement.
Bruce Linton, Canopy’s CEO, said the company plans to learn from the team at Constellation on growing brands–a topic Linton spoke about at length during a presentation earlier this year.

 

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In an interview with the Wall Street Journal, Constellation chief executive officer Rob Sands said the deal is a direct response to an expectation for cannabis to be legalized in the US.
Constellation emphasized it does not plan to sell any type of cannabis products until it is legal to do so. The company plans to close the transaction by their third quarter of their fiscal year 2018.
Since Monday’s announcement, Canopy stock has increased 26.11 percent. On Thursday (November 2), following a confirmation statement from Canopy on the deal, the company experienced a volume of 3.95 million, representing the number of shares traded that day.

Financial analyst weighs in the move by Constellation

In an interview with Business News Network Vivien Azer, an analyst at Cowen & Co., said she applauded Constellation for earning the status of the first mover as an alcohol company making a formal bet in cannabis.
Azer added she wouldn’t be surprised to see more deal similar to the Canopy one to begin between cannabis, alcohol companies, and tobacco ones.
When asked if the momentum from changes of regulation at a state level will elevate all the way to the federal level Azer said she doesn’t expect any changes “under the current administration.”
The state-level momentum should put the US in a position, with a change in administration for a broader shift in cannabis regulation,” Azer said.
A report by CNBC indicated Constellation would be working with Canopy to start developing “cannabis-infused beverages,” which could potentially open a whole new opportunity for the sector.
Don’t forget to follow us @INN_LifeScience and @INN_Cannabis for real-time news updates!
Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.


 

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Ayurcann (CSE:AYUR) entered into a joint venture with Bazelet Group, Israel’s largest privately held medical cannabis company. Ayurcann CEO Igal Sudman shared the company’s excitement about bringing unique terpene-enriched medicinal cannabis to the Canadian marketplace. 

“Canada is a very closed-loop country, and the opportunity to bring a variety of different enhancement and technologically advanced products is very important to us. The relationship that we formed with Bazelet is going to enhance our offerings into the Canadian marketplace,” Sudman said. 

Bazelet has launched multiple lines of terpene-enriched cannabis oils; each one is specifically designed for various indications, symptoms and personal needs. The company’s terpene-enriched products are optimized for women’s health, for elderly population needs, for specific types of pains (muscle, joint, neuropathic) and for improved night sleep. 

According to Sudman, there are a lot of larger companies that have tried to do this, but none have been able to successfully bring innovation into the market. Ayurcann is rapidly forging partnerships with several companies worldwide, including Cannmart, Patient Choice and Kindred Partners.

“We’re growing the business, customer base, relationships and partnerships worldwide. We’re bringing the latest technology into Canada, and enhancing not only our company, but the investors’ value moving forward,” added Sudman. 

Watch the full interview with Ayurcann CEO Igal Sudman above.

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Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) (“Trulieve” or “the Company”), a leading and top-performing cannabis company based in the United States announced today the opening of a new Florida dispensary, the Company’s 91st nationwide.

The latest dispensary, located in Winter Park , supports Trulieve’s goal of ensuring medical cannabis patients across Florida have safe, reliable access to the medications they rely on. The dispensary expands access throughout Central Florida , joining four locations throughout nearby Orlando .

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Nextleaf Solutions Ltd. (CSE: OILS) (OTCQB: OILFF) (“Nextleaf”, “OILS”, or the “Company”), the world’s most innovative cannabis extractor, is pleased to announce that the United States Patent and Trademark Office has granted the Company a patent pertaining to the extraction and purification of THC and CBD.

The Company believes it has developed defendable intellectual property around the most efficient methods for producing THC and CBD distillate at scale within a regulated market. Nextleaf owns 15 U.S. patents and has been issued over 80 patents globally.

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Cannabis Company Executives share vision, answer questions live at VirtualInvestorConferences.com

Virtual Investor Conferences in partnership with KCSA Strategic Communications and ATB Capital Markets today announced the agenda for the upcoming Cannabis Industry Virtual lnvestor Conference. Individual investors, institutional investors, advisors and analysts are invited to attend. The two-day program begins at 9:30 AM ET on Tuesday June 29 th .

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Acquisition solidifies Canopy Growth’s leadership position in the Canadian recreational market

Canopy Growth Corporation (“Canopy”) (TSX: WEED) (NASDAQ: CGC) and The Supreme Cannabis Company, Inc. (“Supreme”) (TSX: FIRE) (OTCQX: SPRWF) (FRA: 53S1) are pleased to announce the completion of the previously announced arrangement (the “Arrangement”) whereby Canopy has acquired all of the issued and outstanding common shares of Supreme (the “Supreme Shares”).

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