Canopy Growth Corporation (TSX:WEED), one of the Canadian marijuana stocks, said it has appointed Martha Stewart as an advisor
SmallCapPower | March 4, 2019: Canopy Growth Corporation (TSX:WEED), one of the Canadian cannabis stocks, Thursday announced that it has appointed Martha Stewart, a lifestyle guru, to an advisory role with the Company, which will help Canopy to develop a new line of CBD products across multiple categories. The partnership between Canopy Growth and Martha has been done through collaboration with Sequential Brands Group, Inc. (NASDAQ:SQBG), which owns the Martha Stewart media and merchandising brands, a company that operates in fashion and home categories consumer brands. Canopy Growth will use Martha’s vast knowledge of consumer products while exploring the effectiveness of CBD and other cannabinoids.
Martha Stewart, 77, is an American retail executive businesswoman, writer, television personality, and former model. She has extensive experience in consumer products and gained huge success in business ventures, encompassing publishing, broadcasting, merchandising, and e-commerce. Martha has a deep understanding of consumers need in the U.S. and around the world, and is actively involved as a vocal advocate for animals, championing the health and wellness of pets and farm animals.
Canopy Growth Chairman and Co-CEO Bruce Linton said “As soon as you hear the name Martha, you know exactly who we’re talking about. Martha is one of a kind and I am so excited to be able to work alongside this icon to sharpen our CBD product offerings across categories from human to animal.”
Post the approval of the Farm Bill by the U.S. Congress in 2018, which legalized the cultivation of hemp as a source of cannabidiol (CBD), one of the compounds found in cannabis, CBD has become an area of great interest for cannabis companies. However, there is no clarity for how CBD-products can be distributed or what it can be added into as FDA has not yet allowed CBD-infused foods or beverages in interstate commerce. Cannabis is legal in Canada but not yet in food and beverage form. CBD is currently being explored as a low-risk treatment option for pets as it is for humans (such as anxiety, chronic pain, seizures and recovery from cancer treatment).
Canopy Growth Corp is focused on R&D with several clinical trials underway, exploring how cannabis compounds can improve human and animal health and the effectiveness of CBD, a non-intoxicating compound, to treat anxiety in animals. Earlier in January 2019, the Company reported the development of diverse product offerings specific to hemp-derived CBD, which will be further developed and introduced into the market in the near future with active participation from Martha. Canopy also reported the investment of as much as $150 million to build hemp industrial park in New York State, its first production plant in the U.S. and also expects to build hemp facilities in multiple states in future.
Although it is unclear if Sequential Brands Group would be involved in the partnership, its stock surged by 40% to $1.68 on Thursday, the biggest one-day gain since 2012. Canopy Growth shares rose ~4% on the news to C$62.38 on Thursday.
Canopy Growth is a diversified cannabis company, offering distinct brands and curated cannabis varieties in dried, oil and Softgel capsule forms. Canopy Growth is the most valued cannabis company in Canada with a market cap of $21.4 billion and currently trades at a Price-to-Book multiple of ~3.0x.
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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