Canopy Growth (TSE:WEED) is expected to report its annual results on June 27, 2017, which should act as a catalyst for its stock price
SmallCapPower | June 21, 2017: Canopy Growth Corporation (TSX: WEED) shares rose 1.7% on Monday to close at $7.95 following the release of significant updates on its global operations, which included among other things, international expansion (Germany, Chile) and the closing of a $36 million offering. Canopy Growth, the first publicly-traded cannabis company in North America, had been on a downward trajectory since its peak of $13.00 on February 13, 2017, on valuation concerns and hit a yearly low $6.82 on June 6, 2017. Since that low, the stock has gained nearly 16% on positive news developments, which included a partnership with PUF Ventures Inc. (CSE: PUF) announced on June 6, 2017, and the latest operational update. The Company’s annual results are expected on June 27, 2017, which should act as a catalyst for Canopy Growth’s stock price.
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A key announcement in the operational update that should spur investor interest is continued strong growth in Tweed-branded cannabis sales of Spektrum Cannabis Germany GmbH. As of June 2017, Spektrum distributed cannabis products to over 480 pharmacies across Germany, more than doubling from 200 pharmacies in April 2017. As part of the update, the Company also announced that its Spektrum’s facility in Germany was GMP certified, the only GMP-certified cannabis processing facility in Germany. International operations, particularly Germany, EU and South America, represent a significant market opportunity for Canopy’s future growth.
As part of its continued international expansion efforts, the Company also announced Spectrum Chile SpA for entry into Chilean market and the launch of Spectrum Cannabis, a new International Medical Brand for medical markets outside North America. Partnering with a domestic Chilean medical cannabis company, Canopy Growth plans to enter the market aggressively and position itself as a leader in the Chilean market.
Canopy Growth also announced the closing a $36.2 million offering by its subsidiary Canopy Rivers, the streaming and strategic support platform that aggregates wholesale supply of cannabis. Canopy Growth had committed $20 million in seed capital for the creation of Canopy Rivers in April 2017.
Disclosure: Neither the author nor any of the principals at Small Cap Power, or their family members, own shares in any of the companies mentioned above.
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