Why Is Canopy Growth (CGC) Stock Plunging 20% Today?
Source: T. Schneider | Shutterstock Canopy Growth (NASDAQ: CGC ) stock is falling on Thursday following an update that Constellation Brands (NYSE: STZ ) has reached an agreement to eliminate its Class B shares . This agreement was suggested by a committee made up of independent directors from Constellation’s Board. That has the company’s Board advising shareholders to vote in favor of eliminating its Class B shares. Constellation Brands says that this agreement was reached with members of the Sands Family. If approved, it would result in Class B shareholders having to trade in their stock for cash or a mix of stock and cash. The company is offering up to $1.5 billion in cash, or one share of STZ stock and $64.64 in cash for each share of Class B stock converted. So what does this have to do with Canopy Growth? Constellation Brands owns a large stake in the marijuana company. With the change in how its shares are listed, shares of CGC stock are sliding as well. But there’s more to it than that.
Why Is Canopy Growth (CGC) Stock Plunging 20% Today?
Source: T. Schneider | Shutterstock Canopy Growth (NASDAQ: CGC ) stock is falling on Thursday following an update that Constellation Brands (NYSE: STZ ) has reached an agreement to eliminate its Class B shares . This agreement was suggested by a committee made up of independent directors from Constellation’s Board. That has the company’s Board advising shareholders to vote in favor of eliminating its Class B shares. Constellation Brands says that this agreement was reached with members of the Sands Family. If approved, it would result in Class B shareholders having to trade in their stock for cash or a mix of stock and cash. The company is offering up to $1.5 billion in cash, or one share of STZ stock and $64.64 in cash for each share of Class B stock converted. So what does this have to do with Canopy Growth? Constellation Brands owns a large stake in the marijuana company. With the change in how its shares are listed, shares of CGC stock are sliding as well. But there’s more to it than that.