What prospects do Canopy Growth shares have?
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%.
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