(Corrects paragraph three to remove reference to 56% ownership stake. A previous version of the story was corrected to add the prefix “multi” in first paragraph)
Aug 26 (Reuters) - Constellation Brands Inc expects to record a loss of about $54.8 million in its current quarter from its multi-billion dollar investment in weed producer Canopy Growth, the Corona brewer disclosed in a regulatory filing on Monday.
The brewer has invested more than $4 billion in Canopy for a stake in the marijuana producer, banking on the proposed legalization of recreational weed in several countries. (bit.ly/30z9beN)
Constellation, in its recent post-earnings call, told analysts it was not pleased with Canopy’s loss-making streak.
Canopy has been investing heavily to diversify and expand its operations, including the launch of new products.
Canopy also fired founder and co-Chief Executive Officer Bruce Linton in July, a move that is believed to be orchestrated by Constellation.
The brewer reported a loss of $1.30 per share in the first quarter compared with a profit of $3.77 a year ago, mainly due to a 20 cents per share loss related to Canopy. (Reporting by Nivedita Balu in Bengaluru Editing by Saumyadeb Chakrabarty)
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