What prospects do Canopy Growth shares have?
Canopy Growth Corporation is one of the largest Canadian producers of cannabis, having specialised as a producer of cannabis for medical use. Originally known as Tweed Marijuana Inc., it changed its name to Canopy Growth Corporation in September 2015.
It controls over one-third of the Canadian cannabis market and has seven cannabis production facilities in nine countries around the world.
Cannabis was legalised for medical purposes in Canada in 2001, and, in June of 2018, the country's parliament passed a law permitting its use for personal consumption. As of mid-October, cannabis has been freely available for purchase in Canada.
Canopy Growth Corporation's shares — which are currently traded under the ticker symbol CGC on several stock exchanges, including the NYSE — received a huge boost following the introduction of this law. However, after October's sharp rise, when the share price almost hit $57, it dropped to $33.50.
Canopy Growth Corporation's shares were also strengthened by a $5 billion investment deal with American spirits producer Constellation Brands Inc., which owns the Corona beer brand. As a result, the US-based outfit increased its stake in Canopy Growth to 38%.
Disclaimer: The information in this article is not intended to be and does not constitute investment advice or any other form of advice or recommendation of any sort offered or endorsed by Libertex. Past performance does not guarantee future results.
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