Pubdate: Wed, 05 Sep 2018
Source: Burlington County Times (NJ)
Copyright: 2018 Calkins Newspapers. Inc.
Author: Sam Wood


Constellation Brands Inc. -- the $40 billion brewer of Corona beer,
vintner of Mondavi wines, and distiller of Black Velvet whiskey --
helped drive select marijuana stocks higher on Wednesday after
Constellation's chief operating officer trumpeted that the legal
cannabis industry was well on its way to becoming a global force,
according to Bloomberg News.

"We think this is going to be a big business worldwide," said
Constellation's Bill Newlands, Bloomberg reported. "This is not going
to be limited to Canada. This will undoubtedly be a market that
develops in the United States. It's developing around the world in
places like Germany and Australia and other markets."

Canada will legalize marijuana for adult recreational use on October
17. Arcview's North American Marijuana Index, or NAMMAR, has gained
nearly 200 percent during the past year.

Constellation, of upstate New York, has poured nearly $6 billion into
Canopy Growth Corp., a Canadian cannabis company. Constellation holds
a nearly 40 percent stake in the Ontario-based marijuana grower. The
American company has expressed interest in producing THC-infused
drinks and sleep aides. But U.S. distribution of any product
containing THC, the psychoactive ingredient found in cannabis, remains
unlikely in the near term. Marijuana and its derivatives are forbidden
by the federal government despite its recent approval of the
anti-seizure medicine Epidiolex. The FDA stubbornly considers
marijuana a Schedule 1 substance, equivalent to heroin or LSD, and
without any legitimate medical use.

Constellation and Canopy closed slightly down on Wednesday. But the
stocks of two other Canadian marijuana producers soared. Tilray Inc.,
closed at $89.86 up 16.7 percent. and Cronos Group Inc., which
announced a partnership with Boston biotech firm Gingko Bioworks on
Tuesday, closed at $12.44, up 11.6 percent.