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With far too many brands to name them here, their labels do include Corona, Modello, and Black Velvet. A full list of their brands appears here. What often happens in any M&A activity, including STZ”s announced 9.9% minority stake in Canopy Growth Corporation, is that the share price of the investee appreciates. Shareholders of Canopy Growth enjoyed a more than 30% ROI, over just two or three days, since the news broke on October 30th.
This investment into legal cannabis by a Fortune 500 company may usher in the much anticipated day 0 in the USA. If the NYSE or the Federal Administration intervene is yet to be seen because the company is investing in operations that are illegal under Federal law regardless of the target company being located in another country and in full compliance of the laws of that country. Canopy Growth has been included in the CannaInvestor Magazine top 25 long term stock pick list from day 1 and our last issue focused on investing in Canadian companies. One very important aspect of this investment by Constellation Brands that I found particularly promising was that the news of the investment came from main stream media and not paid stock promoters/influencers.
What makes this even more interesting, if that is possible, is the rationale used by NASDAQ to refuse to list MassRoots Inc (OTC:MSRT). The second last paragraph of that Forbes article is of particular interest and relevance: “However as long as marijuana is federally illegal, neither NASDAQ or the New York Stock Exchange is going to list a company related to recreational marijuana”. Has Ecoforming successfully altered the ecosystem enough that this statement is in fact no longer relevant? Time will tell but more and more if one looks up to the sky one can see the meteor heading straight for planet prohibition. The ultimate outcome of court cases such this New Jersey appeals court ruling on October 31 to review the “Schedule 1” status may come into play in any NYSE action with respect to STZ as well as Canadian companies with US operations. How this court case plays out may also be significant. Every event on their own stands alone yet when added together make it more clear than ever that the battle to end prohibition can and will be won.