Canopy Growth Corp (WEED)

[Wo]

Ive had that valuation in mind since the deal was announced and it kept rolling over in my head that STZ is giving an implied value of ~20b, yet Canopy has yet to trade at that valuation. Others have. And so little is mentioned of the additional 4.5B in warrants. I think its best to read Canopy M&A from at least 4 quarters ago to anticipate what the company is closing in on today, and rate the execution on that. Then read the most recent ones and again, anticipate what the value of the company will be upon those executions. For example, in just 4 short years, the corporation and industry are here. What might both look like in another, say 2-4 years? Perhaps Unrecognizable in terms of development. Who travels in any direction and only looks back?

https://www.canopygrowth.com/wp-content/uploads/2018/08/CBI-CG-Press-Release-FINAL.pdf

Constellation Brands to Invest $5 Billion CAD ($4 Billion USD) in Canopy Growth to Establish Transformative Global Position and Alignment

Constellation Brands will increase its ownership interest in Canopy Growth by acquiring 104.5 million shares directly from Canopy Growth, thereby achieving approximately 38 percent ownership when assuming exercise of the existing Constellation warrants. Constellation Brands is acquiring the new shares at a price of C$48.60 per share, which is a 37.9 percent premium to Canopy’s 5-day volume weighted average price of the common shares on the Toronto Stock Exchange (“VWAP”), and a 51.2 percent premium to the closing price on August 14, 2018. Constellation will also receive additional warrants of Canopy that, if exercised, would provide for at least an additional $4.5 billion CAD to Canopy Growth.