THE LEX COLUMN: Bet on cannabis leaves beer investors high and dry
Pot and beer may seem like a sure-fire way to get high. But in the case of Constellation Brands, its bet on Canadian cannabis farmer Canopy Growth is leaving investors with an enormous downer.
The US-based brewer of Corona beer is slashing the fair value of its 38% stake in Canopy for the second time in 2019. It said it was taking a $839m charge for the weed producer. This follows the $828m reduction Constellation disclosed during its first-quarter earnings in June.