Shares of
Canopy Growth Corp. (
TSX.WEED) got a bounce Monday after the company's biggest investor, Constellation Brands Inc.,
decided to exercise its warrants on the company late Friday.
Constellation said it would pay US$245 million in exchange for increasing its stake in the pot giant to 38.6 percent from 33.5 percent.
Jefferies analyst Owen Bennett sees Constellation's investment in Canopy improving sentiment in the cannabis sector.
Bennett said in a research note that the sector can develop real value:
"With someone like Constellation Brands, that arguably has more intimate knowledge of the space now than many, not giving up, it gives hope."
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