Greenstar Canada Investment Limited Partnership (“Greenstar”), an affiliate of Constellation Brands, Inc., announced that, pursuant to applicable Canadian securities laws, it has become the beneficial owner of 9,438,450 additional common shares of Canopy Growth Corporation (“Canopy”) because its first tranche of warrants will vest on August 1, 2018. Furthermore, Greenstar will become the beneficial owner of an additional 9,438,450 common shares on December 3, 2018 because its second tranche of warrants will vest on February 1, 2019. These warrants were issued as part of Greenstar’s original investment in Canopy in October 2017 and have an exercise price of $12.9783 per common share.
Accordingly, as of today Greenstar is the beneficial owner of Common Shares representing approximately 14.1% of the issued and outstanding Common Shares of Canopy, including the 18,876,901 Common Shares acquired by Greenstar in October 2017.
Similarly, on December 3, 2018, assuming no change in Canopy’s issued and outstanding Common Shares or in Greenstar’s acquisition or beneficial ownership of Common Shares prior to December 3, 2018, Greenstar will beneficially own approximately 18.8% of the issued and outstanding Common Shares as of today.
Greenstar acquired the common shares and warrants as part of a previously announced strategic investment in Canopy, one of the earliest commercial players in Canada’s legal cannabis market.
“We look forward to continuing to work with the Canopy team to ensure we’re prepared to capitalize on what we believe will be a significant growth opportunity in the years ahead,” said Julian Cohen, Senior Vice President of Emerging Categories at Greenstar.
Greenstar may purchase or sell common shares or exercise the warrants in the future, either on the open market or in private transactions, in each case, depending on a number of factors, including general market and economic conditions and other available investment opportunities. Greenstar currently has no other plans or intentions that relate to its investment in Canopy. Depending on market conditions, general economic and industry conditions, Canopy’s business and financial condition and/or other relevant factors, Greenstar may develop other plans or intentions in the future relating to one or more of the above items, including seeking one or more nominees for election to Canopy’s board of directors in accordance with its governance protocols and procedures for the nomination and election of directors.
This news release contains forward-looking statements. All statements other than statements of historical fact are forward-looking statements and involve risks and uncertainties that could cause actual results to differ materially from those implied by such forward-looking statements. All forward-looking statements speak only as of the date of this news release and Greenstar undertakes no obligation to update or revise any forward-looking statements. The forward-looking statements contained in this news release are also subject to other factors and uncertainties disclosed from time-to-time in Constellation Brands, Inc.’s filings with the United States Securities and Exchange Commission.