Short-sellers appear to have covered their positions in Canopy Growth Corp. in droves last month after news that the Canadian pot producer had lined up a multi-billion-dollar investment from U.S.-based alcohol giant Constellation Brands Inc.
Data from global information provider IHS Markit shows that the number of Canopy shares sold short plummeted following word of the transaction, which could eventually see Constellation increase its stake in the cannabis producer to more than 50 percent.
The deal was announced on Aug. 15, when the short interest in Canopy was approximately 19.3 million shares, the IHS Market numbers show.
That figure began to decline noticeably in the days that followed, reaching as low as 10.4 million shares, the lowest level since February.
As of Aug. 30, short interest in Canopy stood at approximately 11.2 million shares, down about 8.1 million shares from the day the deal was announced.
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