Canopy Growth sells its 13.2% stake in AusCann for C$6.3 million

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%.

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