Canopy Growth (NYSE:CGC)

Canopy Growth (NYSE:CGC)

Stock Report Details

Issue Sub TypeCommon StockExchangeNYSE
52 Week High59.2552 Week Low24.21
Dividend Yield0 %Annual DividendN/A
P/E Ratio NEShares Outstanding200,989,000

Canopy Growth Corporation, formerly Tweed Marijuana Inc., is a cannabis company based in Smiths Falls, Ontario. Tweed was founded by Bruce Linton and Chuck Rific in 2013,and renamed Canopy Growth Corporation in 2015. As of mid April 2019, Canopy was the world’s largest cannabis company, based on the value of all shares, or market capitalization.At that time, Constellation Brands Inc. controlled over 35% percent of the company.

Bruce Linton is Founder, Chairman and Co-CEO and Mark Zekulin is Co-CEO and President of the company. The company was the first federally regulated, licensed, publicly traded cannabis producer in North America, traded on the Toronto Stock Exchange as WEED. It began trading as CGC on the New York Stock Exchange on May 24, 2018, as the first cannabis producer on the NYSE. On October 17, 2018— marijuana became legal in Canada for recreational use. Bruce Linton was in St. John’s, Newfoundland and sold the first legal gram of cannabis in the country.

Prior to that date, cannabis was legal only for medical purposes in Canada; growers were licensed by Health Canada under the Access to Cannabis for Medical Purposes Regulations (ACMPR). The company was described as “Canada’s first cannabis unicorn with a $1 billion dollar valuation” by the Financial Post news organization in November 2016. The company was renamed to Canopy Growth Corp. in September 2015 with two established brands.[ Specifically, CGC is the parent company of licensed cannabis producers Tweed Inc., Tweed Farms Inc., Spectrum Cannabis., as well as newly acquired companies.

Tweed operates out of the former Hershey’s chocolate factory in Smiths Falls, Ontario, and operates the Tweed Farms greenhouse in Niagara-on-the-Lake.In provinces where the private sector is allowed to sell cannabis, the company has opened retail stores via its subsidiary Tweed Inc.

In August 2018, Constellation Brands (a beer, wine and spirits producer) announced that it would invest an additional C$5 billion (US$3.8 billion) in Canopy Growth, giving it a 35% interest in the company, up from the previous 10%. President Bruce Linton said the additional funds would be used for international expansion wherever federal laws allow it. Future marketing plans include products such as cannabis-infused beverages and sleep aids. After the Constellation deal was announced, the market value of Canopy Growth rose to nearly US$12 billion.

By October 5, 2018, the company’s market capitalization exceeded US$14 Billion and Linton was named 2018 CEO of the Year by the Ottawa Board of Trade and Ottawa Business Journal.

In addition to operations in Canada, Canopy Growth has a partnership agreement in Spain with pharma company Alcaliber S.A., owns a subsidiary in Germany that imports medical cannabis, Spektrum Cannabis GmbH, and has a partnership with Spectrum Cannabis Denmark ApS, a medical cannabis grower. The company is also involved in the business in JamaicaChile and Brazil,as well as in Australia. In 2018, the company acquired Annabis Medical, a distributor in the Czech Republic, and medical marijuana supplier Daddy Cann Lesotho in Africa. In February 2019 Canopy set up a partnership with the Beckley Foundation to distribute medical cannabis in the UK.

Subsequent acquisitions for this corporation included Vert Medical, the German cannabis distributor MedCann (now Spektrum Cannabis) and a majority interest in Quebec’s Groupe H.E.M.P.CA Inc. In early December 2016, Canopy Growth Corp. announced a friendly takeover bid of another licensed Ontario-based producer, Mettrum Health (CVE:MT). The deal, pending the approval of Mettrum’s board, was closed in January 2017.

In addition to sales in the domestic market, Canopy Growth began selling medical cannabis products in Germany and Brazil in 2016. However, the company was operating at a loss, presumably because of the significant expenditures it was making to acquire competitors in preparation for significantly increased cannabis demand by the recreational use market expected to commence in 2018. Legislation to legalize cannabis for recreational use was approved by the House of Commons of Canada in November 2017; the Senate of Canada was expected to vote on the Cannabis Act (Bill C-45) on June 7, 2018. Actual sales to casual users was likely to commence in January 2018. In January 2019, Canopy Growth announced that it was granted a licence by New York State to process and produce hemp in the United States. 

On January 27, 2017, Canopy and Mettrum Health Corp. announced the takeover of Mettrum by Canopy. The deal was awaiting approval by the Ontario Superior Court of Justice. At around the same time the deal had closed, Canopy completed the purchase of the entire former Hershey’s chocolate factory, adding 50 percent more production space at that location. The takeover of Mettrum has resulted in “the creation of a world-leading diversified cannabis company with six licensed facilities and a licensed production footprint of approximately 665,000 sq. ft. with significant acreage for expansion”.

In February 2018, Canopy Growth Corporation and Sunniva Inc., a North American provider of medical cannabis, announced a supply agreement. Sunniva’s Canadian subsidiary, Sunniva Medical Inc., committed to sell Canopy 45,000 kilograms of premium quality cannabis annually for a two-year period commencing in the first quarter of 2019.

Expansion into Europe continued in April 2019 with the acquisition of licensed cannabis producer Cáñamo y Fibras Naturales, S.L. which is based in Spain. By that time, the Company already owned a licensed production site in Odense, Denmark, as well as the Storz and Bickel facility in Tütlingen, Germany.

A tentative expansion step into the US market was also made in April 2019. The company concluded a deal to pay US$300-million for the right to buy cannabis company Acreage Holdings Inc. a company located in British Columbia but with a diverse portfolio of cannabis cultivation, processing and dispensing operations in the US. No actual purchase was made, but the agreement states that Canopy will buy 100% of Acreage shares for US$3.4 billion if the American federal government legalizes cannabis. In an interview with The Canadian Press, Vivien Azer, senior research analyst with Cowen, said that Acreage was a suitable acquisition target because it had the greatest market penetration in the U.S. and believed that the deal would “likely prove helpful in pushing for a change in U.S. laws surrounding cannabis”.

should I Buy CGC Stock?

This morning Canopy Growth (NYSE: CGC) announced plans to acquire Acreage Holdings in a $3.4 billion deal.

Canopy – valued at $14 billion – is the world’s most valuable cannabis company.

It’s been one of the world’s early movers in legal cannabis. And the company desperately wants to profit from the sizeable U.S. market.

Canopy News and Press releases

Tweed and TerraCycle team up to take Cannabis Packaging Recycling Program across Canada 4-22-2019

SMITHS FALLS, ON, April 22, 2019 /CNW/ – In the spirit of Earth Day, Canada’s best-known cannabis brand is thrilled to officially launch the Tweed x TerraCycle recycling program across Canada. Previously available in select stores and provinces, today’s announcement officially marks the roll out of Canada’s first country-wide Cannabis Packaging Recycling Program.

Tweed and TerraCycle team up to take Cannabis Packaging Recycling Program across Canada (CNW Group/Canopy Growth Corporation)

As we approached legalization of recreational cannabis in Canada, Tweed realized a solution was needed for all the new containers, tubes and packages in our industry, to ensure they are diverted away from landfills and upcycled into other products.

First introduced in October 2018, the Tweed x TerraCycle Cannabis Packaging Recycling Program accepts all cannabis containers from all licensed producers – including tins, plastic bags, tubes, and bottles with child-proof caps, which are notoriously tricky to recycle. Since its debut, the free Cannabis Packaging Recycling Program has saved over 165,000 containers from ending up in landfills. The program is currently active in over 106 legal cannabis retail locations across Canada, including all Tweed and Tokyo Smoke stores, as well as select third-party retailers. In addition to drop off points located at participating retail stores, consumers have the option to register online through Tweed.com for free pickup and recycling of their discarded containers.

“As a community, we came together quickly to address the sustainability concern in our industry and I’m so proud of what we’ve accomplished so far. Over 165,000 containers have already been collected through the Tweed x TerraCycle program and will be melted down to make plastic pellets used to create new products,” reflects Hilary Black, the company’s Chief Advocacy Officer, on the success of the program so far. “With the next phase of the Tweed x TerraCycle recycling program, we’re excited to bring this initiative to even more communities across Canada and keep working to reduce waste across the industry.”

“By partnering with Tweed, we’ve given consumers a free and easy way to divert cannabis packaging from landfills,” said Tom Szaky, CEO, TerraCycle. “Through this ground-breaking recycling solution, these now common items are collected on a national scale from all licensed producers and given a second life as a different product, thereby extending the lifecycle of the packaging material.”

The Cannabis Packaging Recycling Program is an ongoing activity, open to any individual purchaser or consumer of legal cannabis products or public/private/online retailer with a legal license to distribute cannabis products in their respective province. To learn more about the program, please visit terracycle.ca/tweed or tweed.com/recycle.

Canopy Growth Expands European Footprint, Acquires Spanish Licensed Cannabis Producer Cafina 4-16-2019

SMITHS FALLS, ON and ALICANTE, Spain, April 16, 2019 /CNW/ – Canopy Growth Corporation (“Canopy Growth” or the “Company”) (TSX: WEED) (NYSE: CGC) is pleased to announce that it has completed an all-cash acquisition of Spain-based licensed cannabis producer Cáñamo y Fibras Naturales, S.L. (“Cafina”). The acquisition lays the foundation for Canopy Growth to expand its European production footprint into one of the most ideal growing regions in the world, complementing the Company’s existing 430,000 square foot licensed production site in Odense, Denmark, as well as its world-class ISO 13485 internationally certified Storz and Bickel facility in Tütlingen, Germany.

Canopy Growth Expands European Footprint, Acquires Spanish Licensed Cannabis Producer Cafina (CNW Group/Canopy Growth Corporation)

Cafina is one of three companies in Spain authorized to cultivate, distribute and export cannabis containing more than 0.2% of tetrahydrocannabinol (THC) for medicinal and research purposes, and does so today in a 1,600 sq. ft. greenhouse. It is also licensed to conduct hemp cultivation. With this acquisition and planned corresponding expansion in Spain, Canopy Growth improves its long-term positioning to address demand across Europe for medical cannabis and CBD products. Canopy Growth is also partnered with a second licensed producer in Spain that produces cannabis flowers for the Company under an existing supply arrangement.

“Operating multiple production assets within Europe will allow us to increase revenue in the EU free of supply constraints,” commented Mark Zekulin, President & Co-CEO, Canopy Growth. “This strategic acquisition in a scalable, low-cost production environment diversifies our owned production capabilities in Europe, similar to our approach in Canada where we have production facilities in seven different provinces. Adding Cafina will allow us to quickly build out our presence in Spain using its existing cultivation licence as a launch pad, while ensuring our Canadian footprint – the largest in the world – can continue to serve the medical and recreational needs of Canadians.”

Founded in 2014, Cafina is based in the Province of Alicante in Spain. With a focused team, Cafina has already established a small greenhouse for research-related medical cannabis production in addition to focusing on crop-related R&D and the sale of hemp seed. Cafina received its general and research licence in November 2018 from the Spanish Agency for Medicines and Health Products (AEMPS) and had previously been granted a hemp licence which authorized the cultivation of cannabis sativa (<0.2% THC) and small-scale extraction of cannabinoids for research purposes. Cafina CEO, Xavier Delas Martinez will continue managing the site as Canopy Growth injects capital in order to scale the operation through calendar 2019, including. 

Canopy Growth continues to strategically deploy its substantial cash reserves to acquire assets that will allow the Company to scale efficiently and into global markets.

Here’s to Future Growth (in sunny Spain).

About Canopy Growth Corporation 
Canopy Growth is a world-leading diversified cannabis and hemp company, offering distinct brands and curated cannabis varieties in dried, oil and Softgel capsule forms. Canopy Growth offers medically approved vaporizers through the Company’s subsidiary, Storz & Bickel GMbH & Co. KG. From product and process innovation to market execution, Canopy Growth is driven by a passion for leadership and a commitment to building a world-class cannabis company one product, site and country at a time. The Company has operations in over a dozen countries across five continents.

The Company is proudly dedicated to educating healthcare practitioners, conducting robust clinical research, and furthering the public’s understanding of cannabis, and through its wholly owned subsidiary, Canopy Health Innovations (“Canopy Health”), has devoted millions of dollars toward cutting edge, commercializable research and IP development. Canopy Growth works with the Beckley Foundation and has launched Beckley Canopy Therapeutics to research and develop clinically validated cannabis-based medicines, with a strong focus on intellectual property protection. Canopy Growth acquired assets of leading hemp research company, ebbu, Inc. (“ebbu”). Intellectual Property (“IP”) and R&D advancements achieved by ebbu’s team apply directly to Canopy Growth’s hemp and THC-rich cannabis genetic breeding program and its cannabis-infused beverage capabilities. Through partly owned subsidiary Canopy Rivers Corporation, the Company is providing resources and investment to new market entrants and building a portfolio of stable investments in the sector.

From our historic public listing on the Toronto Stock Exchange and New York Stock Exchange to our continued international expansion, pride in advancing shareholder value through leadership is engrained in all we do at Canopy Growth. Canopy Growth has established partnerships with leading sector names including cannabis icon Snoop Dogg, breeding legends DNA Genetics and Green House seeds, Battelle, the world’s largest nonprofit research and development organization, and Fortune 500 alcohol leader Constellation Brands, to name but a few. Canopy Growth operates ten licensed cannabis production sites with over 4.3 million square feet of production capacity, including over one million square feet of GMP certified production space. The Company operates Tweed retail stores in Newfoundland and Manitoba and has entered into supply agreements with every Canadian province and territory. For more information visit www.canopygrowth.com

Canopy Growth and DNA Genetics Extend and Expand Relationship 3-19-2019

SMITHS FALLS, ON and LOS ANGELES, CA, March 19, 2019 /CNW/ – Canopy Growth Corporation (“Canopy”) (TSX: WEED) (NYSE: CGC) (“Canopy Growth” or the “Company”), a world-leading, diversified cannabis company and OG DNA Genetics (“DNA”), a globally recognized cannabis brand, are pleased to announce today they have signed an agreement to extend and expand upon their previously announced partnership through to 2024.  With this newly signed agreement, Canopy Growth and DNA have extended their partnership beyond Canada and Jamaica and have committed to bringing DNA’s world-renowned genetics to a soon-to-be disclosed European market.

Canopy Growth and DNA Genetics Extend and Expand Relationship (CNW Group/Canopy Growth Corporation)

Canopy Growth and DNA entered into their first agreement for the Canadian market in 2015. The partnership gave Canopy Growth access to a wealth of unique, genetically-diverse cannabis strains that it then incorporated into its Canadian product lines. In 2017, the partnership between Canopy Growth and DNA was renewed and expanded into Jamaica to bring DNA’s original strains into future Caribbean markets. Under the terms of today’s announcement, Canopy Growth and DNA have committed to working together through 2024 and will make every effort to expand into global markets, including Europe, where regulations permit the legal sale of cannabis for medical and recreational purposes.

“Teaming up with DNA has proven to be a very strong and mutually beneficial partnership,” said Bruce Linton, Chairman and co-CEO of Canopy Growth. “Renewing our partnership for the next five years was a no-brainer for us and we look forward to introducing their high-quality DNA products to consumers around the world.”

“We are thrilled with the ongoing success of our relationship and the momentum we are enjoying with our partners at Canopy Growth,” said Charles Philips, CEO of DNA. “The strength of our phenotyping and quality standards combined with Canopy’s global presence and distribution power is a winning combination that is providing consumers in key markets around the world with the best possible cannabis.”

For over 15 years, DNA has set a global industry standard for breeding genetically diverse strains that are considered best-in-class. Their diligent phenotyping process led to more than 200 global cannabis awards, making them the most celebrated cannabis breeders in the world. DNA Certified™ products distributed by Canopy Growth have been grown using DNA’s genetics, under the careful supervision of both DNA and Canopy Growth. 

About OG DNA Genetics 
DNA Genetics was rooted in Los Angeles and founded in Amsterdam in 2004 by Don Morris and Aaron Yarkoni.  Over the last decade, the Company has built and curated a seasoned genetic library and developed proven standard operating procedures for genetic selection, breeding, and cultivation. In a world that is increasingly opening up to commercial cannabis activity, DNA is positioned to become the first, truly geographically-diversified company with multiple partnerships with top-licensed producers and brands that have built their companies and global presence utilizing the “Powered by DNA” model. For more information, please visit www.dnagenetics.com

About Canopy Growth Corporation 
Canopy Growth is a world-leading diversified cannabis and hemp company, offering distinct brands and curated cannabis varieties in dried, oil and Softgel capsule forms. Canopy Growth offers medically approved vaporizers through the Company’s subsidiary, Storz & Bickel GMbH & Co. KG. From product and process innovation to market execution, Canopy Growth is driven by a passion for leadership and a commitment to building a world-class cannabis company one product, site and country at a time. The Company has operations in over a dozen countries across five continents.

The Company is proudly dedicated to educating healthcare practitioners, conducting robust clinical research, and furthering the public’s understanding of cannabis, and through its wholly owned subsidiary, Canopy Health Innovations (“Canopy Health”), has devoted millions of dollars toward cutting edge, commercializable research and IP development. Canopy Growth works with the Beckley Foundation and has launched Beckley Canopy Therapeutics to research and develop clinically validated cannabis-based medicines, with a strong focus on intellectual property protection. Canopy Growth acquired assets of leading hemp research company, ebbu, Inc. (“ebbu”). Intellectual Property (“IP”) and R&D advancements achieved by ebbu’s team apply directly to Canopy Growth’s hemp and THC-rich cannabis genetic breeding program and its cannabis-infused beverage capabilities. Through partly owned subsidiary Canopy Rivers Corporation, the Company is providing resources and investment to new market entrants and building a portfolio of stable investments in the sector.

From our historic public listing on the Toronto Stock Exchange and New York Stock Exchange to our continued international expansion, pride in advancing shareholder value through leadership is engrained in all we do at Canopy Growth. Canopy Growth has established partnerships with leading sector names including cannabis icon Snoop Dogg, breeding legends DNA Genetics and Green House seeds, Battelle, the world’s largest nonprofit research and development organization, and Fortune 500 alcohol leader Constellation Brands, to name but a few. Canopy Growth operates ten licensed cannabis production sites with over 4.3 million square feet of production capacity, including over 500,000 square feet of GMP certified production space. The Company operates Tweed retail stores in Newfoundland and Manitoba and has entered into supply agreements with every Canadian province and territory. For more information visit www.canopygrowth.com

stocktipsfortoday.com (CGC) Canopy Growth.

Canopy Stock News

Unfortunately, Canopy Growth does not pay any dividend. We will be e-mailing the company to find out if dividends are in their future plans.

Interesting read about possible future CGC dividends.

Will We Ever See Dividends From Marijuana Companies?

CGC 6 month Chart

CGC canopy growth corp About page.

Our vision is to be the number one cannabis company in the world. From product and process innovation to market execution and everything in between, we are driven by a passion for leadership, a commitment to drive the industry forward, and above all else, providing medical and recreational cannabis consumers the best possible experience.

Our Story

In April 2014, Canopy Growth became the first cannabis company in North America to be publicly traded. We followed that with being the first to complete a “bought deal”, to diversify our platform to include both greenhouse and indoor growing, to acquire a major competitor and to be listed on the Toronto Stock Exchange. Continuing those firsts, we remain the only cannabis company to be a member of a major global stock market index, in this case the S&P/TSX Composite index.

Away from the markets, Tweed, a Canopy Growth subsidiary, was the first to introduce the now standard concept of Compassionate Pricing to make medical cannabis affordable for patients, and we remain proud to continue supporting a patient’s right to grow at home by selling the widest variety of seeds in the legal Canadian sector. Our commitment to education has and always will be unwavering, as one of the first Canadian cannabis companies to offer Mainpro-M1 accredited continuing medical education programs to Canadian physicians, and to launch in-person assistance through our Tweed Main Street locations. Tweed was also the first Canadian producer to be approved to export dried cannabis to Germany, and our wholly-owned German subsidiary continues to offer an ever-increasing variety of products for sale through German pharmacies. Canopy Growth was the first to strike a strategic relationship with a Fortune 500 beverage alcohol supplier to bring exciting new products to market, and to enter into ground-breaking supply agreements to sell adult-use cannabis to provincial governments across the country. Most recently, in May 2018, it was the first cannabis-producing company to be listed on the New York Stock Exchange.

From our cutting edge research at Canopy Health Innovations, to our hemp operations and financing services through Canopy Rivers Corporation, we are proud of our accomplishments, and are always looking for the next first.”

Here’s to Future Growth.

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