Canopy To Consolidate U.S. Cannabis Assets; Constellation Plans Conversion Of Ownership Interest

(RTTNews) - Constellation Brands, Inc. (STZ) announced that its indirect, wholly-owned subsidiaries, Greenstar Canada Investment Limited Partnership and CBG Holdings LLC, have entered into a consent agreement with Canopy Growth Corporation, providing their consent in respect of a proposed corporate transaction by Canopy to consolidate its U.S cannabis assets into a newly formed entity, Canopy USA. Third-party investors will hold 100% of the common shares of Canopy USA.

Constellation Brands plans to transition existing common shares ownership interest in Canopy Growth into new exchangeable shares, protecting Constellation shareholder value while retaining an interest in Canopy Growth through non-voting and non-participating shares.

"We believe that the conversion of our ownership interest will maintain Constellation's ability to realize the potential upside of our investment in Canopy," said Bill Newlands, Constellation's CEO.