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Canopy Growth Corp T.WEED

Alternate Symbol(s):  T.WEED.DB | CGC

Canopy Growth Corporation is a cannabis company. It delivers innovative products with a focus on premium and mainstream cannabis brands, including Doja, 7ACRES, Tweed, and Deep Space, in addition to category-defining vaporizer technology made in Germany by Storz & Bickel. The principal activities of the Company are the production, distribution and sale of a diverse range of cannabis and cannabinoid-based products for both adult-use and medical purposes under a portfolio of distinct brands in Canada. Its Canada cannabis segment includes the production, distribution, and sale of a range of cannabis, hemp, and cannabis related products in Canada. International markets cannabis segment includes the production, distribution, and sale of a range of cannabis and hemp products internationally. Storz & Bickel segment includes the production, distribution, and sale of vaporizers. This Works segment includes the production, distribution and sale of beauty, skincare, wellness and sleep products.


TSX:WEED - Post by User

Post by WeeDougieNationon Nov 07, 2022 11:46pm
277 Views
Post# 35080915

Forget About SAFE Plus Or CLIMB Act As Cannabis Stock…

Forget About SAFE Plus Or CLIMB Act As Cannabis Stock…

Canopy Growth Corporation (NASDAQ: CGCrecently announced it will create a new U.S.-domiciled holding company, Canopy USA, LLC, which will hold the company's U.S. cannabis investments and enable it to exercise rights to acquire Acreage (OTC: ACRHF), Wana and Jetty.

The Analyst

Cantor Fitzgerald’s Pablo Zuanic kept a ‘Neutral’ rating on Canopy’s stock while raising the price target to $3.30 from $3.05. 

The Thesis

The analyst increased the price target on advanced sentiment of Canopy USA's structure.

Canopy’s shares gained 44% since the close of Oct.24 – the night before the company announced plans for Canopy USA, compared to SPDR S&P 500 (ARCA:SPY) that declined 1%, and a 7% gain for AdvisorShares Pure Cannabis ETF (ARCA:YOLO).

 

Shortly after announcing its plan to conquer the U.S. cannabis market via consolidation of its assets into a new holding company, the NASDAQ expressed disapproval of Canopy’s plan to consolidate the financial results of Canopy USA at one point. 

As such, Canopy’s listing on the NASDAQ is in question, if it chooses to continue with its plan and speed up its entry into the U.S. cannabis market.

We expect Canopy to successfully close the transactions related to the newly formed Canopy USA structure in the year ahead, and eventually even consider delisting from NASDAQ (among other options), assuming the latter does not alter its current stance against listed companies consolidating US THC-plant-touching assets (a lot could happen in the interim),” Zuanic wrote.

The analyst further noted that considering the Toronto Stock Exchange has quickly announced support for the Canopy USA structure, “we believe the TSX would not delist CGC.”

“A scenario of the NYSE being more flexible than NASDAQ seems improbable to us, but not impossible,” he added.

Zuanic said that an important milestone for the company in the close future will be Acreage shareholders voting for the deal.

“CGC could be in a great position to further acquire US assets in the months ahead, with likely expanding opportunities if the 117th Congress does not pass banking reform during the lame-duck session. Indeed, CGC could be steps ahead of peers, which may have less flexibility.”

In case of NASDAQ approval, the analyst believes the “floodgates will open and the entire sector would rerate, including multi-state operators.”

“In other words, instead of SAFE Plus, a Cole Memo II, or a CLIMB Act, we believe that the sector’s main catalyst would be the 'David Klein Exception' (which of course would then become a generalized exception),” Zuanic concluded.

https://sports.yahoo.com/forget-safe-plus-climb-act-161537856.html

 


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