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Canopy Growth Slides After Constellation Directors Leave, Share Conversion

By Dean Seal

 

Shares of Canopy Growth slid after three of its directors, all nominated by Constellation Brands, resigned and Constellation converted its equity stake in the company into a new class of shares.

Canopy stock was down 5%, at $7.44, in post-market trading. Shares had gained 21% during the regular trading session.

The company said after the bell that Garth Hankinson, Judy Schmeling and James Sabia are stepping down from the board. All three had been nominated by a Constellation subsidiary tied to the company's equity stake in Canopy.

Both companies further said that Constellation has elected to convert its Canopy common shares into exchangeable shares, which don't carry any voting rights or rights to receive dividends but can be converted back to common stock at Constellation's discretion.

Constellation Chief Executive Bill Newlands said the move is aligned with the company's intent to "not deploy additional investment in Canopy."

 

Write to Dean Seal at dean.seal@wsj.com

 

(END) Dow Jones Newswires

April 18, 2024 20:13 ET (00:13 GMT)

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