SMITHS FALLS, ONT. -- Constellation Brands Inc. says it is increasing its leading ownership stake in Canopy Growth Corp. after exercising warrants issued more than two years ago.

The U.S. alcohol beverage company's stake will increase 5.1 per cent to reach 38.6 per cent after nearly 18.9 million of the November 2017 warrants were exercised for US$12.98 each for a total of $245 million.

Constellation's stake in the cannabis producer would be about 55.8 per cent if all remaining warrants are exercised and senior notes are converted.

Constellation CEO Bill Newlands said the company continues to believe the long-term opportunity in the evolving cannabis market is "substantial" even though global legalization is in its infancy.

Canopy recently announced it will be cutting 200 workers in its third round of cuts in the last two months.

David Klein, chief executive of the Smiths Falls, Ont., based company and former chief financial officer of Constellation, said his former employer's additional investment "validates" the work done since the initial investment in 2017.

"It also strengthens our ability to pursue the immense market and product opportunities available to Canopy in Canada, the U.S. and other key global markets," he said in a news release.

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