The U.S.-listed shares of Canada-based Canopy Growth Corp. CGC, -7.89% WEED, -8.25% shot up 28% in premarket trade Wednesday, after liquor seller Constellation Brands Inc. STZ, +3.73% said it will invest CAD $5 billion, or the equivalent of about $4 billion, in the diversified cannabis company as part of an expansion of the companies' strategic partnership. Constellation Brand's stock was still inactive ahead of the open. As part of the deal, Constellation Brands will increase its stake in Canopy by buying 104.5 million shares at C$48.60 a share, which is a 51.2% premium to Tuesday's closing price of C$32.15, to achieve 38% ownership. Constellation will also receive warrants that if exercised would provide Canopy with an additional C$4.5 billion. Constellation will nominate four directors to Canopy's board. Canopy shares have gained 4.1% year to date through Tuesday, while Constellation's stock has lost 3.0% and the S&P 500 SPX, +0.64% has tacked on 6.2%.
Globe says Loblaw's Shoppers, others eye the weed sales
Loblaw Companies Ltd (C:L)
Shares Issued 374,657,630
Last Close 8/14/2018 $68.76 Wednesday August 15 2018 - In the News
Also Empire Company Ltd (C:EMP) In the News
Also Pure Global Cannabis Inc (C:PURE) In the News
Also Maricann Group Inc (C:MARI) In the News
Also Canopy Growth Corp (C:WEED) In the News
Also Aphria Inc (C:APH) In the News
The Globe and Mail reports in its Wednesday edition that a number of drugstores and major retailers with in-store pharmacies want to enter the medical and recreational cannabis market. The Globe's Marina Struass and Christine Pellegrini write that a tangle of rules currently prevent them from selling recreational and medical cannabis. The Neighbourhood Pharmacy Association of Canada, which represents small and big drugstore retailers – including Loblaw and Walmart that operate in-store pharmacies -- says pharmacies are best equipped to sell cannabis because they have experience distributing controlled substances and counselling customers about their effects. However, the National Association of Pharmacy Regulatory Authorities does not support pharmacies selling recreational cannabis in their dispensary areas. Some provincial regulatory pharmacist groups also frown on pharmacies selling medicinal marijuana because of inconclusive evidence of its therapeutic effects. Hence, drugstores and big-box retailers that run pharmacies are caught in a difficult spot. They do not want to be left out of what is shaping up to become an economic boon for businesses. Empire's Sobeys is keeping watch on the rule changes.
Globe says Aphria, rivals hear Ford's pot plan sensible
Aphria Inc (C:APH)
Shares Issued 232,005,434
Last Close 8/14/2018 $8.72 Wednesday August 15 2018 - In the News
Also Canopy Growth Corp (C:WEED) In the News
Also Aurora Cannabis Inc (C:ACB) In the News
Also Organigram Holdings Inc (C:OGI) In the News
Also Cronos Group Inc (C:CRON) In the News
Also CannaRoyalty Corp (C:CRZ) In the News
The Globe and Mail reports in its Wednesday, Aug. 15, edition that when Ontario's Progressive Conservatives won office in June, they faced good and bad choices ahead of the looming legalization of recreational weed. A Globe editorial says the PCs could have stuck with the Liberal plan, one that seemed insufficient in scale and consumer appeal. Or they could have rushed through a preferred alternative to meet the Oct. 17deadline, with no time to avoid logistical chaos. Instead, The Globe says the PCs are taking time with a plan that makes more sense. On Monday, Doug Ford's government confirmed it will shift to a distribution model built around private retail outlets, with the government in charge of wholesale supply. However, it will do so more slowly than might have been anticipated, with brick-and-mortar outlets promised to open by April 1, 2019, not upon legalization in October. In between, pot will only be legally available through a government-run on-line store. The Globe says Mr. Ford's government is off to a good start in establishing a broadly sensible approach to pot sales that stands a reasonable chance of bringing them out from underground, and giving itself some runway to implement it.
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