Canopy Growth Corporation is one of the biggest Cannabis producers in Canada. Since the great legalization of marijuana is unstoppable, investing in marijuana stocks like Canopy Growth stock has become increasingly interesting. In this article, we will discuss why you should invest in Canopy Growth and keep you up to date with the latest news and live stock price.
Canopy Growth Corporation General Information
|Headquarters||Smith Falls, Canada|
In April of 2014 Canopy growth became the first publicly traded company that produces Marijuana. Now, they have over 2.4 square feet of production space and are the leading Marijuana stock in the weed market. Their goal is to expand this even more and gain market share into new markets like the Cannabis oil and extracts market. In doing so, they strive to create more profit for their shareholders while remaining a company that takes care of their community. At this moment Canopy Growth sells dried flowers, soft gel capsules, oils, concentrates, and hemp. These products are being sold under the Black Label, DNA Genetics, Tweed, Spectrum Cannabis, CraftGrow, Leafs By Snoop, Foria, and Bedrocan Canada brand names.
Canopy Growth Forecast & Predictions
With a market capitalization of $10.18 billion Canopy Growth is the market leader for the global weed market. While Canopy Growth had a great start since they started in 2013 it’s important to maintain this position. We will now discuss why and how they plan on maintaining this position and expand their production even more.
In December 2018, Trump signed the U.S. farm bill which legalized hemp-based cannabidiol and hemp. In early 2019 Canopy Growth has obtained a license to start producing hemp in New York. With the growth of all CBD products this, of course, is becoming a very interesting market. In response thereto, Canopy has announced they will invest about $100/$150 CAD into a hemp production site based in New York.
Constellation Brands, an alcoholic beverage specialist, invested $5 million CAD into Canopy Growth in November 2018. With this large investment, Constellation Brands has an ownership interest of about 37% and is now working together to expand Canopy Growth even more. At this moment Canopy Growth and Constellation Brands are working on cannabis-infused beverages. With all this cash Canopy is capable of expanded the production sites even more. The goal of Canopy Growth is to expand the business to Europe and sell their medical Marijuana here as well. They are aiming for 5.6 million square feet of licensed capacity to produce 500k of flower.
In addition to this, the legalization of the adult-use market is opening up as well. When the adult-use market is completely legalized in the U.S. and Canada the demand for dried flowers will grow massively. Canopy Growth is already anticipating on this by generating a lot of cash to invest in new growing facilities. In August of 2018 Canopy has said they reserved $5 billion in capital which will be used to accelerate global growth.
Another interesting fact is the uprise of vaporizing oils and buds. The last year’s vaporizers have become very popular and are increasingly being used now to consume Cannabis. Canopy Growth recognizes this growth market and therefore bought Storz & Bickel, one of the biggest vaporizer producers. Storz & Bickel was founded in 1996 by a graphic designer called Markus Storz. In 2000 he launched the what now is the most known medical vaporizer for Cannabis, the volcano vaporizer.
If we look at these recent developments around Canopy Growth we can clearly see they are working hard to maintain and grow even more. If Canopy Growth will be prepared when the recreational weed market opens up there is definitely great growth potential. In addition to this, Canopy Growth is working hard as well to enter new markets. With the acquisition of Storz & Bickel, they show that they also think outside of the box when it comes to creating shareholder value.
For some additional insight, we have a great video for you were Bruce Linton, the CEO of Canopy Growth, discusses the plans and financials for 2019.
Canopy Growth Stock News
Now that you know all there is to know about Canopy Growth stock it’s time to start trading! Don’t forget that investing in stocks always brings risks as you could lose money as well. Therefore never invest money that you can’t afford to lose and make sure you first read this book.