Constellation Brands Inc. said late Friday that it had increased its stake in Canopy Growth Corp. by 5.1%. Canopy Growth shares rose 10% and Constellation shares were flat in the extended session. Constellation increased its stake to a total of 38.6% by exercising C$245 million ($174.2 million) worth of warrants in the marijuana producer which it acquired in 2017, the first investment of a total of roughly $4 billion the drinks giant made in the Canadian pot company. The warrants were set to expire Friday if Constellation did not avail itself of the option to purchase Canopy stock. Constellation said Friday it owns 38.6% of Canopy. Constellation owns additional warrants and senior notes that if converted and exercised would bring its ownership stake to 55.8%.
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