Beverage major Constellation Brands mentioned in a filing with the Securities and Exchange Commission Monday that adjusted losses from its stake in Canopy Growth would amount to -$38.5 million, in its fiscal second quarter ending Aug. 31.
Constellation made a $4 billion investment (i.e. 37% stake) in the Canada-based cannabis company last year. It recognizes equity earnings from its equity-method investment in Canopy on a two-month lag.
For the two quarters ending Aug. 31, its share of Canopy loss will be -$77.3 million on an adjusted basis.
Constellation shares went up +0.6% in premarket trading, and Canopy's U.S.-listed stock climbed +1.6%.