Alcohol giant Constellation Brands said it expects to report a $54.3 million loss in its quarter ending Saturday related to its stake in Canadian cannabis producer Canopy Growth.
The six-month loss ending Saturday attributed to the investment in Smiths Falls, Ontario-based Canopy is expected to be $132.5 million, according to an 8-K filing with the U.S. Securities and Exchange Commission.
As of April 1, Constellation had a 35.6% share of Canopy, according to the filing.
Constellation made an initial investment in Canopy in 2017, then dramatically increased the stake in 2018 to a potential 38% with an cannabis-industry-record $3.8 billion investment.
Bruce Linton, Canopy’s co-CEO, was fired in early July, shortly after the company reported a much higher-than-expected quarterly loss.
Constellation trades on the New York Stock Exchange under the ticker symbol STZ.
The company is expected to release its quarterly earnings during the first week of October.
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