Voting Time Info CGC Stock: What to Know Ahead of Canopy Growth’s Share Conversion Vote This Week
Upon approval of the first proposal, CUSA will be eligible to exercise rights and acquire five companies that Canopy holds conditional interests in. These companies include Mountain High Products, Wana Wellness and The Cima Group.
Once CUSA makes at least one of these acquisitions, Canopy expects to deconsolidate CUSA from its financial statements while having a non-controlling interest in the company. Non-controlling interest arises when one company owns more than 50% but less than 100% of another company.
Two independent proxy advisors have already recommended shareholders vote in favor of both proposals. The first advisor, Glass Lewis, concluded that the proposals are not contrary to shareholder’s interests following analysis. Institutional Shareholder Services (ISS), the second advisor, added that a new class of shares would help the company remain in-line with U.S. legal regulations.
Canopy is betting big on the federal legalization of marijuana in the U.S. and it believes that creating a new class of shares will give it a step forward in the competitive industry. According to MJBiz, the U.S. retail marijuana market could be worth as much as $50 billion by 2026.
https://investorplace.com/2024/04/cgc-stock-what-to-know-ahead-of-canopy-growths-share-conversion-vote-this-week/