The largest publicly trading marijuana company which is Canada based has witnessed a surge in its stock value at the Wall Street. The expected earning from the company was witnessed to be less and the prime reason behind is that the new investment made by the company has overshadowed the larger than expected loss.
The Canadian company witnessed a surge in the stock value to a level more than 50% once the company made an announcement that Constellations Brands had made an investment in the Canopy Growth by USD 4 million and now stakes the 38% of the company. Constellations Brands has taken a bold step towards choosing the marijuana grower company and associating with it as it has a USD 42 billion market value and is behind the famous brand Corona.
Canopy Growth spokesperson said in a press release that this collaboration with the Constellations Brand would provide them to have strategically built and acquire the important assets from the brands in establishing the global scale of production in nearly 30 countries which allow legal sale of marijuana-based product or under medical cannabis program, which will lay the foundation stone for the global recreational cannabis market.
In an interview the CEO of Canopy Growth, Bruce Linton said that they particularly chose the Constellations Brand for a specific reason and not that they have diversified business over beer, wines, and spirits but to the profound quality of entrepreneurship. Where Canopy Growth witnessed a growth of the more than 50%, Constellations Brand also witnessed the growth of 3.7% after the announcement made.
Bruce also made a statement that with this collaboration and seeing the opportunity for the medical cannabis-based treatment for the human and animal globally, regulators are also considering the fact that cannabis could be useful in certain treatment will position the company in the leadership and strengthen its market.