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Constellation Brands Exercises Warrants to Acquire Shares in Canopy Growth, Reinforcing Confidence in Canopy Growth’s Ability to Win Long-Term in Emerging Cannabis Industry

VICTOR, N.Y. and SMITH FALLS, Ontario, May 01, 2020 (GLOBE NEWSWIRE) — Constellation Brands, Inc. (“Constellation Brands”) (NYSE: STZ and STZ.B), a leading beverage alcohol company, and Canopy Growth Corporation (“Canopy Growth”) (TSX: WEED, NYSE: CGC), a leading diversified cannabis company, today announced the exercise by Greenstar Canada Investment Limited Partnership, an indirect, wholly-owned subsidiary of Constellation Brands, of an aggregate of 18,876,901 warrants to purchase common shares of Canopy Growth.

The warrants, which were originally issued on November 2, 2017, were exercised at an exercise price of C$12.9783 per common share for an aggregate of approximately C$245 million. Upon issuance, the common shares represented approximately 5.1% of the issued and outstanding common shares of Canopy Growth. As a result of the acquisition of new common shares, Constellation Brands now indirectly holds, in the aggregate, 142,253,802 common shares, 139,745,453 warrants to purchase common shares and C$200,000,000 principal amount of senior notes. Collectively, the common shares increase Constellation Brand’s ownership of Canopy Growth to 38.6% of the issued and outstanding common shares. Assuming full exercise of all remaining warrants and full conversion of the notes (but for these purposes excluding any effect from a Canopy Growth exercise of its right to acquire Acreage Holdings, Inc. pursuant to its option under the plan of arrangement previously announced on June 27, 2019) Constellation Brands would own approximately 55.8% of the issued and outstanding common shares of Canopy Growth.

“While global legalization of cannabis is still in its infancy, we continue to believe the long-term opportunity in this evolving market is substantial,” said Bill Newlands, president and chief executive officer, Constellation Brands. “Canopy is best positioned to win in the emerging cannabis space and we are confident in the strategic direction of the company under David Klein and his team.”

“This additional investment validates the work our team has done since attracting the initial investment in 2017. It also strengthens our ability to pursue the immense market and product opportunities available to Canopy in Canada, the U.S. and other key global markets,” said David Klein, chief executive officer, Canopy Growth.

Constellation Brands may from time to time acquire or dispose of common shares or other securities of Canopy Growth or exercise its warrants in the future, either on the open market or in private transactions, in each case, depending on a number of factors, including general market and economic conditions and other available investment opportunities. Depending on market conditions, general economic and industry conditions, Canopy Growth’s business and financial condition and/or other relevant factors, Constellation Brands may develop other plans or intentions in the future.

A copy of the early warning report filed in connection with this press release will be available on Canopy Growth’s profile on SEDAR at www.sedar.com or may be obtained by contacting Constellation Brands’ Investor Center at 1-888-922-2150.

About Constellation Brands
At Constellation Brands (NYSE: STZ and STZ.B), our mission is to build brands that people love because we believe sharing a toast, unwinding after a day, celebrating milestones, and helping people connect, are Worth Reaching For. It’s worth our dedication, hard work, and the bold calculated risks we take to deliver more for our consumers, trade partners, shareholders, and communities in which we live and work. It’s what has made us one of the fastest-growing large CPG companies in the U.S. at retail, and it drives our pursuit to deliver what’s next.

Today, we are a leading international producer and marketer of beer, wine, and spirits with operations in the U.S., Mexico, New Zealand, and Italy. Every day, people reach for our high-end, iconic imported beer brands such as Corona Extra, Corona Light, Corona Premier, Modelo Especial, Modelo Negra, and Pacifico, and our high-quality premium wine and spirits brands, including the Robert Mondavi brand family, Kim Crawford, Meiomi, The Prisoner brand family, SVEDKA Vodka, Casa Noble Tequila, and High West Whiskey.

But we won’t stop here. Our visionary leadership team and passionate employees from barrel room to boardroom are reaching for the next level, to explore the boundaries of the beverage alcohol industry and beyond. Join us in discovering what’s Worth Reaching For.

To learn more, follow us on Twitter @cbrands and visit www.cbrands.com.

About Canopy Growth Corporation
Canopy Growth (TSX:WEED, NYSE:CGC) is a world-leading diversified cannabis, hemp and cannabis device company, offering distinct brands and curated cannabis varieties in dried, oil and Softgel capsule forms, as well as medical devices through Canopy Growth’s subsidiary, Storz & Bickel GMbH & Co. KG. From product and process innovation to market execution, Canopy Growth is driven by a passion for leadership and a commitment to building a world-class cannabis company one product, site and country at a time. Canopy Growth has operations in over a dozen countries across five continents.

Canopy Growth’s medical division, Spectrum Therapeutics is proudly dedicated to educating healthcare practitioners, conducting robust clinical research, and furthering the public’s understanding of cannabis, and has devoted millions of dollars toward cutting edge, commercializable research and IP development. Spectrum Therapeutics sells a range of full-spectrum products using its colour-coded classification Spectrum system as well as single cannabinoid Dronabinol under the brand Bionorica Ethics.

Canopy Growth operates retail stores across Canada under its award-winning Tweed and Tokyo Smoke banners. Tweed is a globally recognized cannabis brand which has built a large and loyal following by focusing on quality products and meaningful customer relationships.

From our historic public listing on the Toronto Stock Exchange and New York Stock Exchange to our continued international expansion, pride in advancing shareholder value through leadership is engrained in all we do at Canopy Growth. Canopy Growth has established partnerships with leading sector names including cannabis icons Snoop Dogg and Seth Rogen, breeding legends DNA Genetics and Green House Seeds, and Fortune 500 alcohol leader Constellation Brands, to name but a few. Canopy Growth operates eleven licensed cannabis production sites with over 10.5 million square feet of production capacity, including over one million square feet of GMP certified production space. For more information visit www.canopygrowth.com.

Forward-Looking Statements
This news release contains forward-looking statements. All statements other than statements of historical fact are forward-looking statements, including statements about Constellation Brands’ future ownership of shares of Canopy Growth, the possibility that Canopy Growth might exercise its right to acquire Acreage Holdings, Inc. and Canopy Growth’s ability to continue its pursuit of market opportunities and success. The words “if”,“expect,” “intend” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These statements may relate to business strategy, future operations, prospects, plans and objectives of management, as well as information concerning expected actions of third parties. All forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those set forth in, or implied by, such forward-looking statements. The forward-looking statements are based on management’s current expectations and should not be construed in any manner as a guarantee that such results will in fact occur or will occur on the timetable contemplated hereby. All forward-looking statements speak only as of the date of this news release and neither Constellation Brands nor Canopy Growth undertakes any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In addition to risks and uncertainties associated with ordinary business operations, the forward-looking statements contained in this news release are subject to other risks and uncertainties and other factors and uncertainties disclosed from time-to-time in Constellation Brands’ filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended February 29, 2020 and in Canopy Growth’s filings with the Canadian Securities Administration, including in Canopy Growth’s Annual Information Form filed on SEDAR on June 25, 2019 under the heading “Risk Factors”, or with the United States Securities Exchange Commission, which could cause actual future performance to differ from current expectations.

Michael McGrew, (773) 251-4934 / michael.mcgrew@cbrands.com
Amy Martin, (585) 678-7141 / amy.martin@cbrands.com
Patty Yahn-Urlaub, (585) 678-7483 / patty.yahn-urlaub@cbrands.com
Bob Czudak, (585) 678-7170/ bob.czudak@cbrands.com
Jordan Sinclair, (613) 769-4196 / jordan.sinclair@canopygrowth.com
Tyler Burns, (613) 697-0367 / tyler.burns@canopygrowth.com
Judy Hong, (646) 483-0945 / judy.hong@canopygrowth.com

A downloadable PDF copy of this news release enhanced with multimedia links can be found here: http://ml.globenewswire.com/Resource/Download/785a44d2-acbe-4b19-b6c5-fbcd9667302b

COVID-19: Transport, health services, community empowerment crucial during CMCO – Health D-G

PUTRAJAYA Attention must be given to transportation, health services and community empowerment to control the spread of COVID-19 when the Conditional Movement Control Order (CMCO) begins on Monday, said Health director-general Datuk Dr Noor Hisham Abdullah.

He said these aspects were stressed upon at the meeting between the Ministry of Health (MOH) and the team of medical experts from China.

Touching on the health aspect, he said the operating hours of government hospitals might be extended to include weekends to ease patient congestion in waiting rooms and ensure the practice of social distancing.

“The (service) period will also be extended until 10 pm, so we’re practising distancing through appointments,” he said at the daily press conference on COVID-19 here today.

He said that among other steps which could be taken were to carry out door-to-door health services as well as directing patients who arrive early for their hospital appointments to either wait in their cars or open areas to ease congestion at waiting areas.

From the transportation aspect, Dr Noor Hisham said the MOH would issue a standard operation procedure (SOP) to the transport sector and that the public should practise social distancing, wear face masks as well as carry out sanitation operations more often.

Commenting on community empowerment, he said everyone should jointly adopt the practice of social responsibility and the new normal to ensure that new positive cases would not escalate.

“The safest place now is at home, so we advise all Malaysians that if there is no need to go out, then stay at home,” he said and reminded the public to be prepared to face a longer fight against the virus as no vaccine had been found yet.

Touching on the topic of the ‘coronavac’ vaccine for COVID-19, he said discussions had been held with China, which had agreed to make Malaysia its research venue for the third phase of its study.

“Their research is at phase two now, but they (China) will complete phase two of their study probably by November and December and, once completed, they will start on phase three to see the vaccine’s effectiveness on humans,” he explained when asked about the latest development regarding the vaccine being produced by China.  

Meanwhile, he said MOH had traced another new COVID-19 cluster involving six tahfiz students in Lanchang, Pahang and would look into implementing Enforced Movement Control Order (EMCO) at the affected madrasah.

“We have screened 50 percent of the students and staff at the tahfiz and found 4.7 percent of them to be positive. Those who were close contacts with the six positive cases will also be quarantined,” he said.

He also reminded those planning on going out for recreational activities in public parks, when they are opened on Monday, to comply with the SOP drawn up by the MOH, especially on social distancing.

“Parks are huge, so we can keep our distance, but if you go out in groups (and without) distancing, then we can take action under Act 342 (Prevention and Control of Infectious Diseases Act 1988),” he said.

In another development, he said the MOH had received the 50,000 rapid test kits from South Korea, with Sabah and Sarawak getting 10,000 each while the remaining 30,000 were distributed for use at the border in Johor and at the Kuala Lumpur International Airport (KLIA) and KLIA2. 

Source: BERNAMA News Agency

Police nab 19 Chinese nationals involved in online gambling

Police have arrested 19 Chinese nationals including a woman for being allegedly involved in online gambling activities during separate raids at two luxury premises in Jalan Raja Chulan, here, on Tuesday.

Kuala Lumpur police chief Datuk Seri Mazlan Lazim said all the suspects, aged between 20 and 45 years, were detained by a team from the Kuala Lumpur police contingent headquarters’ Anti-Vice, Gambling and Secret Societies Division (D7).

Police also seized laptops and mobile phones of various brands worth RM200,000.

Mazlan said investigations revealed that the syndicate was promoting crypto-currency stock gambling activities targeting victims in China using the WeChat application.

“The syndicate can rake in up to RM150,000 a day, reaching RM4.5 million in a month,’’ he said.

‘’They had been carrying out their operation from the rented luxury premises for almost two months, ” he said in a statement here today.

Mazlan said all suspects had entered Malaysia as tourists using social visit passes and were remanded for 14 days under the Immigration Act 1959/63 and Common Gaming Houses Act 1953.

Source: BERNAMA News Agency

Singapore: 50 more pregnant women brought home

SINGAPORE A total of 66 Malaysians, including 50 pregnant women, were safely transported back by bus from Singapore today via the Johor Causeway during the implementations of the Malaysian Movement Control Order and the Circuit Breaker measure in Singapore.

Both controls, to prevent the spread of the COVID-19 outbreaks in the respective countries, had seen cross-border restrictions take place even though they are separated by only about one kilometre.

There is no public transport across the Johor and Linkedua Expressway when these two controls are in force and the only option is to walk for Malaysians who do not have their own vehicles to go back home.

“So, it is absolutely impossible for pregnant women, the elderly and children. We as Malaysians are compelled to perform this good cause, ”St John Ambulance of Malaysia secretary, Hoo We Tak told Bernama when contacted.

Hoo, who was not burdened by the effort, said this was a second engagement for him and his colleagues here to assist with the third transportation case, with the first and second being last month.

“This time it’s better organised. We also supplied them with drinks, cookies and bread. It was feared that upon arrival in Johor, the quarantine process will take some time. In fact, we were even able to provide seats for them while waiting for the bus ride just now,” Hoo said.

Through the co-ordinations of the St John Ambulance organisations in Singapore and Malaysia, Hoo said seven members and an ambulance from the St John Singapore Responder Unit on duty offered aid and accompanied the group.

Meanwhile, Johor’s State Assemblyman for Stulang, Andrew Chen had collaborated with bus company Causeway Link to provide a bus for all the pregnant women.

Also aided by the Malaysian High Commission in Singapore, to date, about 150 pregnant women had been taken home safely.

“To comply with the social distancing requirement, three trips were arranged today with 22 passengers at a time. The first trip began at 10 am, the second at 11.30 am and the last at 1 pm. They boarded the bus at Kranji MRT, ”Hoo said.

Source: BERNAMA News Agency

Kedah defers implementation of CMCO – Mukhriz

ALOR SETAR Kedah has decided to defer the implementation of the Conditional Movement Control Order (CMCO) announced by Prime Minister Tan Sri Muhyiddin Yassin yesterday, said Menteri Besar Datuk Seri Mukhriz Mahathir.

He said Kedah would not implement the CMCO until the State Security Working Committee Meeting on COVID-19 had decided on it on Tuesday.

“This stand was taken to ensure that Kedah remains a Green Zone and the people would not be endangered by the COVID-19 infection.

“The safety and welfare of the people will not be compromised. For the time being, continue to stay at home and practise social distancing,” he said in a statement here tonight.

Mukhriz said the state government would study the conditions and guidelines of the CMCO to make sure that the easing of the Movement Control Order (MCO) restrictions was suitable for the situation in the state.

He said the state government was determined to keep Kedah a Green Zone after all the districts in the state had been declared free of active COVID-19 cases.

In a special address in conjunction with Workers’ Day, Muhyiddin said the CMCO would be implemented on Monday to allow most economic activities to resume.

Malaysia has been placed under the MCO from March 18 to May 12 to curb the spread of the deadly coronavirus.

Source: BERNAMA News Agency

Air Selangor counters back in operation Monday

KUALA LUMPUR All Pengurusan Air Selangor Sdn Bhd (Air Selangor) customer service counters will resume operation on May 4 (Monday), from 9 am to 4 pm, Monday to Friday throughout Ramadan.

Air Selangor Corporate Communications Head Elina Baseri said the water utility company was ready with COVID-19 preventive measures including implementation of social distancing, screening of customers’ body temperature and hands sanitisers.

“Air Selangor assures that only healthy personnel are allowed to be on duty and deal with customers, besides ensuring that they wear face masks,” she said in a statement, today.

She said Air Selangor had also prepared ‘drop box’ for handing over of documents and cheques at customer service counters.

To avoid congestions and to reduce close contacts between customers and staff, Air Selangor encouraged customers to pay online via Jompay website (Biller Code: 4200), Air Selangor application, Air Selangor Customer Service portal or through the company’s registered agents.

Besides payment, services such as changing account ownership, customers are encouraged to scan application forms and send them through email to wecare@airselangor.com,” she said.

Yesterday, Prime Minister Tan Sri Muhyiddin Yassin announced the implementation of the Conditional Movement Control Order (CMCO) with various economic and social activities allowed, beginning Monday.

Source: BERNAMA News Agency

Family denies living in dilapidated tent

KUALA PILAH A family has refuted viral social media reports claiming that they are living in a tent under a simple zinc roof structure at Kampung Malan, Johol near here.

Radzuran Ismail, 52, said he and his wife together with their three children had actually been stranded there since the imposition of the Movement Control Order (MCO) on March 18.

“I brought my wife Nazariah Mat Dakim, 47, and three children, aged between six and 14, here during school holidays in March and we are staying in this temporary hut built on a family land. When the MCO came into force, we cannot go anywhere and stranded here.

“We have no house here because the family’s ancestral home was destroyed in a fire in 2015, but I have applied for a house under the Hardcore Poor Resettlement Programme (PPRT) and it is still under process.

“I often commute alone from our real home in Meru, Klang, Selangor to this place because I’m working at a palm oil factory and planting some plants here. I built this structure for me and my family to have a place to rest,” he told Bernama when met here today.

The story of the family became viral after Radzuran’s sister, Maznah, 40, a PhD student at Universiti Teknologi Malaysia (UTM) Skudai, Johor, was sent home after being stranded on campus due to the imposition of the MCO.

Source: BERNAMA News Agency