TSXV:NDVA.H - Post by User
Post by
davgroon Jul 27, 2023 3:38pm
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Post# 35560275
Canopy Growth offers Wana gummies on Spectrum
Canopy Growth offers Wana gummies on SpectrumMore news today that I believe is NEGATIVE for NDVA.
Canopy is now offering the full line of Wana cannabis gummies through Spectrum Therapeutics -- Canopy Growth Corp.'s medical cannabis division. One might initially think this is positive news but you need to remember that all the Wana product being offered by Canopy was sold to them by Indiva at wholesale prices.
This news follows the announcement in May of the assumption of certain agreements by Canopy Growth which grant it control of all distribution, marketing, and sales of industry leading Wana branded edible cannabis products in Canada.
"The addition of Wana gummies to our medical store provides an immediate benefit to our Canadian business and further solidifies our North American house of brands. Over the coming months we look forward to growing Wana's market share across both the medical and adult-use markets in Canada" said David Klein, CEO, Canopy Growth.
The heavy push by Canopy to market Wana branded gummies (low margin) will surely take a bite out of Indiva branded edibles (high margin) being offered in the marketplace.
I see no catalysts moving forward, other than regulatory changes to edible concentrations, that can positively affect NDVA share price. I expect 2023 Q2 financials to disappoint on both revenue and profit with the recent May 2023 Canopy agreement.