Cannabis shares slid in premarket trading. Aurora Cannabis fell 4.67%; Canopy Growth fell 3%; Cronos Group, Tilray fell over 2%.
Canopy Growth slid as three of its directors, all nominated by Constellation Brands, resigned and Constellation converted its equity stake in the company into a new class of shares.
The company said after the bell that Garth Hankinson, Judy Schmeling and James Sabia are stepping down from the board. All three had been nominated by a Constellation subsidiary tied to the company's equity stake in Canopy.
Both companies further said that Constellation has elected to convert its Canopy common shares into exchangeable shares, which don't carry any voting rights or rights to receive dividends but can be converted back to common stock at Constellation's discretion.
Constellation Chief Executive Bill Newlands said the move is aligned with the company's intent to "not deploy additional investment in Canopy."
