When Canopy Growth Corporation (NYSE:CGC) landed a partnership with — and a large investment from — Constellation Brands (NYSE:STZ) last year, it only made sense that major alcoholic-beverage makers would look to make deals with other Canadian marijuana-growers. The natural question was: “Who’s next?” We now know the answer to that question.
On Wednesday, Molson Coors Brewing (NYSE:TAP) announced that it was partnering with The Hydropothecary Corporation (NASDAQOTH:HYYDF), also known as HEXO, on a joint venture to develop cannabis-infused beverages. In addition, Molson Coors will receive warrants to purchase shares of HEXO.
The deal was a tremendous boost for HEXO, with its stock price soaring 18% after the joint venture with Molson Coors was announced. This partnership also is likely to have a broader impact on other Canadian marijuana stocks.