Canopy Growth Corp.
said Tuesday it has sold its 42 million-share stake in Australian cannabis company AusCann Group Holdings for 15 cents a share, raising total proceeds of C$6.3 million ($4.8 million). The trade was facilitated by Canaccord Australia. The stake was equal to 13.2% of AusCann. “The decision to divest our position in AusCann, which we obtained three years ago in exchange for support provided, will allow us to sharpen our focus on our wholly-owned operations in the market, while continuing to collaborate with our partners at AusCann,” Canopy Chief Executive Mark Zekulin said in a statement. Shares rose 2.9% in premarket trade, but are down 30% in 2019, while the ETFMG Alternative Harvest ETF
has fallen 26% and the S&P 500
has gained 18%.
View more information: https://www.marketwatch.com/story/canopy-growth-sells-its-132-stake-in-auscann-for-c63-million-2019-10-15