‘Critical step in our move’
“Our relationship with Constellation and the commitment to work together to develop and market regulated recreational cannabisbased beverages, when and where they are federally legal, is a critical step in our move up the value chain.”
The transaction was heralded by some as a gamechanger for Canada’s cannabis industry, with an established, out-of-market player giving a vote of confidence in the country’s marijuana business. Constellation’s brands include Corona beer and Kim Crawford wines.
The Constellation deal has helped reward Canopy shareholders. The company’s stock price is up 55.09 per cent over the past month, and 118.38 per cent for the year. Shares of Canopy closed at $19.96 Tuesday, down 2.06 per cent for the day.
The latest results from Canopy also come as provinces across Canada prepare their preferred retail systems ahead of legalization. Canopy struck what it described as an “historic” two-year agreement with New Brunswick during its second quarter, which will see the company help supply the province’s coming recreational market. The deal is for four million grams of cannabis in its first year, terms Canopy valued at $40 million.
For its fiscal year-to-date, Canopy says it has now sold 3,850 kilograms and kilograms equivalent of cannabis at an average price of $7.98 per gram, an increase over the 2,153 kilograms the company says it sold at an average price of $7.05 per gram for the six months ended Sept. 30, 2016.