New Highs In The Cannabis Market: High Past Returns, High Hopes, And High Valuations

The marijuana industry recently saw its biggest ground-breaking deal when Constellation Brands (STZ traded in the U.S.) announced a $3.8 billion equity investment in Canopy Growth to up their stake from 9.9% to 38%. The price Constellation paid per share was at a 51% premium to where Canopy had closed a day prior to the deal announcement. STZ also holds warrants in Canopy which could bring the stake to over 50%, if exercised. This deal followed Aurora Cannabis agreeing to acquire MedReleaf...