Constellation Brands, Inc. (NYSE: STZ) announced last week the expiration of all its warrants to acquire common shares of Canadian cannabis producer Canopy Growth Corp. (TSX: WEED) (NASDAQ: CGC). The alcohol giant said it currently has no intentions or plans related to Canopy.
The New York-based company said in a press release that “all 88,472,861 Tranche A warrants” held by its wholly-owned subsidiary, CBG Holdings LLC expired as of November 1, 2023.
“Since the vesting of the remaining aggregate of 51,272,592 Tranche B and Tranche C warrants was conditioned on the exercise, in full, of the Tranche A warrants, the remaining Warrants are not, and will not become, exercisable by CBG,” Constellation said.
The move resulted in Constellation no longer being deemed to beneficially own any of the 139,745,453 Common Shares underlying the warrants.
Constellation, through its subsidiaries, now has a stake in Canopy amounting to 171.5 million common shares or around 20.7% of the total outstanding shares.
The company said its plans could potentially be subject to a change in light of market conditions, economic and industry circumstances, as well as Canopy's business and financial state or other factors, reported Marijuana Business daily.