Proactiveinvestors USA & Canada Canopy Growth Corporation https://www.proactiveinvestors.com Proactiveinvestors USA & Canada Canopy Growth Corporation RSS feed en Fri, 19 Apr 2019 23:17:37 -0400 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[Media files - Buds & Duds: Canopy stock soars as it strikes mammoth $3.4B deal to buy Acreage after US federal legalization ]]> https://www.proactiveinvestors.com/companies/stocktube/13064/buds--duds-canopy-stock-soars-as-it-strikes-mammoth-34b-deal-to-buy-acreage-after-us-federal-legalization-13064.html Thu, 18 Apr 2019 16:38:00 -0400 https://www.proactiveinvestors.com/companies/stocktube/13064/buds--duds-canopy-stock-soars-as-it-strikes-mammoth-34b-deal-to-buy-acreage-after-us-federal-legalization-13064.html <![CDATA[News - Buds & Duds: Canopy stock soars as it strikes mammoth $3.4B deal to buy Acreage after US federal legalization ]]> https://www.proactiveinvestors.com/companies/news/218872/buds--duds-canopy-stock-soars-as-it-strikes-mammoth-34b-deal-to-buy-acreage-after-us-federal-legalization-218872.html Cannabis stocks rolled up into the long weekend on the back of boosts yesterday, after a volatile few weeks. 

The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, was up 1.1% to 294.05 on Thursday. The Horizons Marijuana Life Sciences Index ETF was up 0.05% at C$20.18.

Buds

Canopy Growth Corporation (TSE:WEED) (NYSE:CGC) was the talk of the town on Thursday after it struck a mammoth US$3.4 billion deal to buy Acreage Holdings (CSE:ACRG.U) after cannabis has been legalized in the US. 

Shares of Canopy soared 4.4% at C$59.64 in Toronto and up 4.0% at US$44.56 in New York. 

The deal is complicated, and was finalized Thursday morning in New York. It grants Canopy the right to purchase all of Acreage’s stock, following legalization in the US. New York-based Acreage Holdings is one of the largest multistate cannabis operators in the US, with a presence in 20 states.

Until then, the two companies will operate independently. The deal will also grant Acreage access to Canopy's brands, including Tweed. 

“Today we announce a complex transaction with a simple objective. Our right to acquire Acreage secures our entrance strategy into the United States as soon as a federally-permissible pathway exists,” said Canopy co-CEO Bruce Linton in a press release. “By combining Acreage’s management team, licenses and assets with Canopy Growth’s intellectual property and brands, there will be tremendous value creation for both companies’ shareholders.”

READ: Next Green Wave kicks off cannabis production in California

Other gainers on Thursday included Next Green Wave Holdings Inc (CSE:NGW) (OTCMKTS:NXGWF) which announced Thursday that it has received an occupancy permit for its first indoor production facility from the City of Coalinga.

Shares popped, up 6.6% at US$0.38 in New York, up 6.3% at C$0.51 in Toronto. 

Shares of iAnthus Capital Holdings Inc. (CSE:IAN) (OTCMKTS:ITHUF) gained Thursday, up 3.3% at C$6.84 in Toronto, up 2.9% at US$5.12 in New York. The company released news that it is launching the sale of smokable flower and pre-rolled joints in Florida through iAnthus' "GrowHealthy" Florida dispensary brand.

The flower sales will commence on Saturday, April 20, also known as the cannabis holiday "4/20".

Duds

Laggards on Thursday Aphria Inc (TSE:APHA) (NYSE:APHA), which continued to slide, down 2.2% at C$7.65 in New York, off 2.1% at C$10.21 in Toronto. 

The Canadian producer announced Thursday it was raising US$300 million in convertible senior notes. It's been a tough six months for the company, which has seen a hostile takeover bid, the departure of two executives, as well as a $50 million impairment charge. 

Tilray Inc (NASDAQ:TLRY) shares lagged on Thursday and the stock has been on a steady decline over the past six months. So far in 2019, the stock is down 30%, including a 7% loss this week on Monday. 

Shares were down again Thursday, slipping below US$50 threshold down 3.4% at US$48.97. 

Contact Katie Lewis at katie@proactiveinvestors.com

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Thu, 18 Apr 2019 11:11:00 -0400 https://www.proactiveinvestors.com/companies/news/218872/buds--duds-canopy-stock-soars-as-it-strikes-mammoth-34b-deal-to-buy-acreage-after-us-federal-legalization-218872.html
<![CDATA[Media files - Buds & Duds: Cannabis stocks perk up after rough start to the week; NextLeaf shares soar ]]> https://www.proactiveinvestors.com/companies/stocktube/13027/buds--duds-cannabis-stocks-perk-up-after-rough-start-to-the-week-nextleaf-shares-soar-13027.html Tue, 16 Apr 2019 16:13:00 -0400 https://www.proactiveinvestors.com/companies/stocktube/13027/buds--duds-cannabis-stocks-perk-up-after-rough-start-to-the-week-nextleaf-shares-soar-13027.html <![CDATA[News - Buds & Duds: Cannabis stocks nudge up on Friday; Heritage shares soar after subsidiary strikes marketing deal ]]> https://www.proactiveinvestors.com/companies/news/218518/buds--duds-cannabis-stocks-nudge-up-on-friday-heritage-shares-soar-after-subsidiary-strikes-marketing-deal-218518.html Cannabis stocks cruised higher on Friday on the back of a lacklustre week for cannabis stocks.

The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, was  1% to 295.13. The Horizons Marijuana Life Sciences Index ETF was up 0.4% at C$20.82.

Buds

Heritage Cannabis Holdings Corp (CSE:CANN) (OTCMKTS:HERTF) shares soared after it told investors Friday that its subsidiary Voyage Cannabis Corp has struck an agreement with Cannavolve Inc to boost its sales of recreational cannabis across Canada. As part of the deal, Voyage will gain better access to a number of provincial cannabis boards.

Shares of Heritage Cannabis soared 20% at US$0.45 in New York and up 13% at C$0.61 in Toronto.

On Thursday, Heritage announced it had also struck a new deal with a syndicate of investment dealers led by Cormark Securities to increase the size of its bought-deal financing to C$15 million from C$10 million.

READ: Heritage Cannabis's subsidiary Voyage Cannabis strikes marketing deal with Cannavolve

Another gainer of the morning was Canopy Growth Corporation (TSE:WEED) (NYSE:CGC) which soared on news that it was going to be the first cannabis stock to join S&P/TSX 60 Index.

Shares jumped 5.4% at C$56.31 in Toronto and up 5.5% at US$42.29 in New York.

S&P Dow Jones Indices said Canopy stock will replace Goldcorp Inc, with the change taking effect before trading on April 18.

Duds

Laggards on Friday included Green Growth Brands Inc (CSE:GGB), which dropped 1.8% at US$3.87 in New York and down 3.5% at C$3.86 in Toronto, on no news. 

Other stocks that declined included MariMed Inc (OTCMKTS:MRMD), which dropped 5.7% to US$3.80. 

TILT Holdings Inc (CSE:TILT) was on the decline, down 3.8% at C$2.29. 

Contact Katie Lewis at katie@proactiveinvestors.com

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Fri, 12 Apr 2019 11:03:00 -0400 https://www.proactiveinvestors.com/companies/news/218518/buds--duds-cannabis-stocks-nudge-up-on-friday-heritage-shares-soar-after-subsidiary-strikes-marketing-deal-218518.html
<![CDATA[News - Canopy Growth adds Seth Rogen's new cannabis brand to its arsenal ]]> https://www.proactiveinvestors.com/companies/news/217346/canopy-growth-adds-seth-rogen-s-new-cannabis-brand-to-its-arsenal-217346.html Canopy Growth Corp (TSX:WEED) (NYSE:CGC) is adding a cannabis brand founded by Vancouver natives Seth Rogen and Evan Goldberg. Houseplant, which the pair debuted on Wednesday, will have its first strain available in British Columbia starting in April.

Houseplant will rely on Canopy’s production and distribution capacity to sell flower, Softgel and pre-rolled cannabis.

"We have been getting to know the Houseplant team for quite a while now and continue to be impressed by their understanding of the cannabis consumer, attention to detail, and drive towards their vision," President and co-CEO Mark Zekulin said. "We could not be more excited to partner with them and work towards our shared goal of making Houseplant one of the largest cannabis brands in the world."

READ: Canopy Growth stock jumps on new cultivation license, expanded partnership

Rogen, the star of such films as Pineapple Express and This is the End, said on Instagram that he and longtime collaborator Evan Goldberg had been working on the company since 2013. In the post, Rogen unveiled Houseplant’s website, which features instructional videos explaining different strains of cannabis and even how to roll a joint.

        View this post on Instagram                  

Been working on something I’m very excited about for years and years. Follow @houseplant if you’d like to find out more! I’m sorry I’m being mysterious but that’s how it is!

A post shared by Seth (@sethrogen) on

Mar 26, 2019 at 12:04pm PDT

"Houseplant is a passion we've brought to life through drive and dedication," Houseplant co-founder Seth Rogen said. "Every decision we've made for the business reflects the years of education, first-hand experience and respect we have for cannabis."

The stock fell 2.4% to C$58.31 on the TSX and 3% to US$43.36 on the NYSE.

Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com

Follow him on Twitter @andrew_kessel

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Wed, 27 Mar 2019 10:33:00 -0400 https://www.proactiveinvestors.com/companies/news/217346/canopy-growth-adds-seth-rogen-s-new-cannabis-brand-to-its-arsenal-217346.html
<![CDATA[News - Canopy Growth stock jumps on new cultivation license, expanded partnership ]]> https://www.proactiveinvestors.com/companies/news/217130/canopy-growth-stock-jumps-on-new-cultivation-license-expanded-partnership-217130.html Canopy Growth Corporation (TSX:WEED) (NYSE:CGC) received a cannabis cultivation license for its facility in Fredericton, New Brunswick, the company announced Monday. The medical cannabis producer expects to cultivate more than 5,000 kg of cannabis per year at the $40 million facility with the first harvest set to hit the market within six months.

Investors liked what they heard, sending the stock up 2% before the bell to $44.38.

READ: Canopy Growth extends reach in US with acquisition of hemp company AgriNextUSA

The Smith Falls, Ontario-based company also bolstered its ongoing partnership with Los Angeles cannabis brand OG DNA Genetics. The two companies agreed to expand their current deal on Monday, allowing Canopy to bring OG’s cannabis strains to the European markets.

Canopy Growth and OG DNA first paired up in 2015 in Canada and later expanded to Jamaica as well. Their European deal is scheduled to last through 2024.

Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com

Follow him on Twitter @andrew_kessel

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Mon, 25 Mar 2019 08:28:00 -0400 https://www.proactiveinvestors.com/companies/news/217130/canopy-growth-stock-jumps-on-new-cultivation-license-expanded-partnership-217130.html
<![CDATA[News - Canopy Growth extends reach in US with acquisition of hemp company AgriNextUSA ]]> https://www.proactiveinvestors.com/companies/news/216969/canopy-growth-extends-reach-in-us-with-acquisition-of-hemp-company-agrinextusa-216969.html Canopy Growth Corporation (NYSE:CGC) (TSE:WEED) announced Thursday the acquisition of hemp company AgriNextUSA for an undisclosed sum.

The Smith Falls, Ontario-based company said in a statement that it hopes the new addition will help navigate a US market ripe for expansion after 2018's Farm Bill legalized hemp as a crop. Hemp is a source of cannabidiol, the non-psychoactive component of cannabis.

AgriNextUSA CEO Geoff Whaling, a longtime US hemp advocate, will join Canopy as a strategic adviser.

"The United States is the next stop on Canopy Growth's desired path to becoming a leading, revenue-generating company focused on all aspects of cannabinoids and their potential," said Canopy co-CEO and Chairman Bruce Linton in a statement.

The cannabis grower plans to build a facility in southern New York, calling it a Hemp Industrial Park. There are commercial applications for all parts of the plant, which the company hopes to maximize.

Canopy received a hemp license from the state earlier this year and plans to invest between $100 million and $150 million in the project, which it previously said will source hemp exclusively from US farmers.

The stock dropped 1.7% to US$46.09 in New York and 1% to C$61.67 in Toronto.

Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com

Follow him on Twitter @andrew_kessel

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Thu, 21 Mar 2019 11:49:00 -0400 https://www.proactiveinvestors.com/companies/news/216969/canopy-growth-extends-reach-in-us-with-acquisition-of-hemp-company-agrinextusa-216969.html
<![CDATA[News - Canopy Growth partners with HollyWeed to extract cannabis oils and resins ]]> https://www.proactiveinvestors.com/companies/news/216855/canopy-growth-partners-with-hollyweed-to-extract-cannabis-oils-and-resins-216855.html Canopy Growth Corporation (NYSE:CGC) (TSE:WEED) said Wednesday that it has struck up a new processing and extraction agreement with HollyWeed Manufacturing & Extracts Inc.

Under the terms of the two-year deal, HollyWeed Manufacturing & Extracts Inc will process Canopy’s dried cannabis into oil and resin at its manufacturing facility in Victoria, British Columbia.

The extraction services provided by HollyWeed extends Canopy Growth’s production commitment in British Columbia where it has more than 3 million square feet of grow space in Delta and Aldergrove.

READ: Canopy Growth rises after announcing cannabidiol product partnership with Martha Stewart

“The cannabis resin we get from HollyWeed will be used for our current offering of oils and softgels, as well as our future advanced manufacturing products,” said Bruce Linton, co-CEO of Canopy Growth.”This is an opportunity for Canopy Growth to build a strong partnership with another high-quality Canadian company.”

The two companies expect the first shipment of cannabis to be used for extraction will take place in fall 2019.

Headquartered in Smiths Falls, Ontario, Canopy Growth is the one of the world’s largest diversified cannabis and hemp companies, offering distinct brands and curated cannabis varieties in dried, oil and softgel capsule forms.

HollyWeed North, the parent of HollyWeed Manufacturing & Extracts, meanwhile, is a private Canadian company, established in 2016, boasting subsidiaries specializing in the growth, manufacturing, licensing and production of cannabis.

Canopy Growth shares held steady at $46.09 in pre-market trade on Wednesday.

Contact Ellen Kelleher at ellen@proactiveinvestors.com

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Wed, 20 Mar 2019 09:18:00 -0400 https://www.proactiveinvestors.com/companies/news/216855/canopy-growth-partners-with-hollyweed-to-extract-cannabis-oils-and-resins-216855.html
<![CDATA[Media files - Buds & Duds: Cannabis sector basks in celebrity glow after Martha Stewart signs on to advise Canopy Growth ]]> https://www.proactiveinvestors.com/companies/stocktube/12401/buds--duds-cannabis-sector-basks-in-celebrity-glow-after-martha-stewart-signs-on-to-advise-canopy-growth-12401.html Thu, 28 Feb 2019 16:23:00 -0500 https://www.proactiveinvestors.com/companies/stocktube/12401/buds--duds-cannabis-sector-basks-in-celebrity-glow-after-martha-stewart-signs-on-to-advise-canopy-growth-12401.html <![CDATA[News - Buds & Duds: Cannabis sector basks in celebrity glow after Martha Stewart signs on to advise Canopy Growth ]]> https://www.proactiveinvestors.com/companies/news/215554/buds--duds-cannabis-sector-basks-in-celebrity-glow-after-martha-stewart-signs-on-to-advise-canopy-growth-215554.html The cannabis sector basked in a round of celebrity pomp Thursday after it emerged that the domestic doyenne Martha Stewart will advise Canopy Growth, the world’s biggest marijuana producer, to fuel interest in its hemp-derived cannabidiol (CBD) products.

Buoyed by the news, the North American Marijuana Index, which tracks leading cannabis stocks in the US and Canada, added 0.6% to hit 294.02.

Buds

Charging ahead of the pack Thursday was Canopy Growth (NYSE:CGC), which added 4.5% to $47.81.

The Smiths Falls, Ontario company wants to tap into Martha Stewart’s “deep understanding of what consumers in the US and around the world want” as it looks to develop an array of products from hemp-derived CBD for people and animals.

“I am delighted to establish this partnership with Canopy Growth and share with them the knowledge I have gained after years of experience with the subject of living,” said Martha Stewart. “I’m especially looking forward to our first collaboration together, which will offer sensible products for people’s beloved pets.”

Canopy Growth is investing between $100 million and $150 million in a hemp industrial park in New York state, which will be its first hemp facility in the US.

In other news, scientists at UC Berkeley have the potential to bring about great changes to the marijuana sector after synthesizing cannabis compounds in a lab. If this fledgling scientific experiment can be produced for the masses, cannabis, THC and CBD could be manufactured more cheaply than via standard cultivation methods.

Tilray Inc shares (Nasdaq:TLRY) (Nasdaq:TLRY) were boosted by the announcement, adding 2.12% to hit $80.98.

Arcadia Biosciences Inc (NASDAQ:RKDA), the agricultural food science company, also dazzled, climbing 66% to $8.96.

The Californian company is breaking into cannabis by looking to develop new cannabis and hemp varieties. A new unit at the company- Arcadia Specialty Genomics – will focus on making genetic improvements to cannabis and hemp crops – and be led by CFO Matt Plavan.

Duds

Ranking high on the list of laggards was Green Growth Brands (OTCMKTS:GGBXF), which shed 3% to hover at $3.66.

The Columbus, Ohio-based cannabis company announced after the market closed Wednesday that it posted a net loss of $13.19 million in its fiscal second quarter, ending on December 31, on revenue of $3.14 million.

Also trading lower on the unveiling of lackluster quarterly results was Canopy Rivers Inc (CVE:RIV), which shed 2.5% to C$4.65 in Canadian trade.

In its fiscal third quarter, which finished on December 31, the Toronto-based investing arm of Canopy Growth posted a total comprehensive loss of C$79.5 million.

 

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Thu, 28 Feb 2019 11:42:00 -0500 https://www.proactiveinvestors.com/companies/news/215554/buds--duds-cannabis-sector-basks-in-celebrity-glow-after-martha-stewart-signs-on-to-advise-canopy-growth-215554.html
<![CDATA[News - Canopy Growth rises after announcing cannabidiol product partnership with Martha Stewart ]]> https://www.proactiveinvestors.com/companies/news/215544/canopy-growth-rises-after-announcing-cannabidiol-product-partnership-with-martha-stewart-215544.html Canopy Growth Corporation (NYSE:CGC) (TSE:WEED) rose Thursday after announcing that the domestic doyenne Martha Stewart has joined the company in an advisory role to assist with developing a line of hemp-derived cannabidiol products.

The cannabis company, with the largest market cap and Stewart’s company Sequential Brands Group Inc (NASDAQ:SQBG) said she will apply her knowledge of consumer products while exploring the effectiveness of CBD and other cannabinoids for humans and pets.

Shares of Canopy Growth rose 3.5% to US$47.35 in New York trading. Sequential Brands surged 38% to US$1.66 on the Nasdaq.

READ: Canopy Growth partners with Alimentation Couche-Tard in cannabis retailing

"I am delighted to establish this partnership with Canopy Growth and share with them the knowledge I have gained after years of experience in the subject of living," Stewart said in a statement. "I'm especially looking forward to our first collaboration together, which will offer sensible products for people's beloved pets."

Canopy Growth said it has developed diverse product offerings specific to hemp-derived CBD and looks forward to working closely with Stewart as they further develop and introduce these products to market in the future.

CBD is a non-psychoactive component of marijuana.

Earlier this month, Canopy Growth said it had signed a multiyear deal with convenience store operator Alimentation Couche-Tard Inc (TSE:ATD) for the retail sale of its Tweed line of cannabis products in a store solely dedicated to the brand.

Sequential Brands owns, promotes, markets and licenses a portfolio of consumer brands in the fashion, active and home categories and includes Stewart’s media and merchandising properties

Contact Dennis Fitzgerald at dennis@proactiveinvestors.com

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Thu, 28 Feb 2019 09:54:00 -0500 https://www.proactiveinvestors.com/companies/news/215544/canopy-growth-rises-after-announcing-cannabidiol-product-partnership-with-martha-stewart-215544.html
<![CDATA[News - Canopy Growth partners with Alimentation Couche-Tard in cannabis retailing ]]> https://www.proactiveinvestors.com/companies/news/215146/canopy-growth-partners-with-alimentation-couche-tard-in-cannabis-retailing-215146.html Canopy Growth Corporation (TSE:WEED) (NYSE:CGC) said Friday that it has inked a multi-year deal with convenience store operator Alimentation Couche-Tard Inc (TSE:ATD) for the retail sale of its Tweed line of cannabis products in a store solely dedicated to the brand.

Canopy said the new cannabis outlet located in London, Ontario, will open in April. Currently, the only place to buy legal recreational weed in Ontario is through a government-run online outlet, the Ontario Cannabis Store, but private brick-and-mortar shops are set to open April 1.

READ: Canada's Canopy Growth shares bloom as it receives license to develop industrial hemp in New York

The provincial agency responsible for regulating those stores, the Alcohol and Gaming Commission of Ontario, held a lottery last month to choose the entities that could apply for the initial 25 retail licenses.

Canopy and Couche-Tard say they have entered into a trademark licence agreement with one of the winners of that lottery to open a store under Canopy's Tweed brand.

The companies say the lottery winner will continue to have “full ownership and control over the London store.”

“We believe the Ontario Cannabis Store and private retailers will co-exist under a tightly regulated framework with common goals to protect public health and safety,” said Alimentation Couche-Tard CEO Brian Hannasch in a statement.

Canopy Growth CEO Mark Zekulin said Tweed was “synonymous with having informed staff who can help consumers find the right option for them,” whether they are new or experienced consumers.

Contact Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive 

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Fri, 22 Feb 2019 09:26:00 -0500 https://www.proactiveinvestors.com/companies/news/215146/canopy-growth-partners-with-alimentation-couche-tard-in-cannabis-retailing-215146.html
<![CDATA[News - Canopy Growth rallies after cannabis giant almost quadruples 3Q revenue ]]> https://www.proactiveinvestors.com/companies/news/214725/canopy-growth-rallies-after-cannabis-giant-almost-quadruples-3q-revenue-214725.html Canopy Growth Corp (NYSE:CGC) (TSE:WEED) rallied Friday after reporting that third-quarter revenue almost quadrupled from a year earlier.

For the quarter ended December 31, the world’s largest marijuana company in terms of market cap posted net revenue of C$83 million, compared with C$21.7 million a year earlier.

Shares of the company advanced 4.8% to US$48.25 in Friday’s New York trading. 

READ: Canopy Growth pours C$30M into Canopy Rivers

Net income climbed to C$74.9 million, or C$0.22 per share, from C$11 million, or C$0.01 per share a year earlier. On a diluted basis, the company reported a loss of C$0.38 per share.

“Our successful first full quarter with recreational sales in Canada reinforces our long-held strategy of making meaningful investments early in order to secure market share,” Chairman and Co-CEO Bruce Linton said in a statement.

Canada legalized the recreational use of marijuana in October.

Constellation Brands investment

A highlight of the third quarter was the closing of a C$5 billion investment in Canopy Growth from the liquor giant Constellation Brands Inc (NYSE:STZ). In addition, Canopy Growth expanded into the UK and Peru and announced plans to set up in New York State, marking its first foray into the US hemp market.

Canopy Growth said its intellectual property portfolio grew to 32 issued patents and more than 140 patent applications, ranging from technology to genetics to clinical formulations.

Cannabis shipments for Canopy Growth totaled 10,102 kilograms and kilogram equivalents, the company reported.

–This story was updated to give the latest stock price and details from the earnings report–

Contact Dennis Fitzgerald at dennis@proactiveinvestors.com

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Fri, 15 Feb 2019 08:08:00 -0500 https://www.proactiveinvestors.com/companies/news/214725/canopy-growth-rallies-after-cannabis-giant-almost-quadruples-3q-revenue-214725.html
<![CDATA[Media files - Buds & Duds: Canopy Growth declines after announcing C$30M investment boost for Canopy Rivers spin-off ]]> https://www.proactiveinvestors.com/companies/stocktube/12142/buds--duds-canopy-growth-declines-after-announcing-c30m-investment-boost-for-canopy-rivers-spin-off-12142.html Thu, 07 Feb 2019 15:08:00 -0500 https://www.proactiveinvestors.com/companies/stocktube/12142/buds--duds-canopy-growth-declines-after-announcing-c30m-investment-boost-for-canopy-rivers-spin-off-12142.html <![CDATA[News - Canopy Growth pours C$30M into Canopy Rivers ]]> https://www.proactiveinvestors.com/companies/news/214209/canopy-growth-pours-c30m-into-canopy-rivers-214209.html Canopy Growth (TSE:WEED) NYSE:CGC) said Thursday that it intends to increase its total investment in its investing arm Canopy Rivers Inc (OTCMKTS:CNPOF) by C$30 million.

The investment by the Canadian cannabis company will be made via a private placement of subordinated voting shares in the capital of Canopy Rivers in parallel with Canopy Rivers bought deal offering of subordinate voting shares.

After the closing of the deal, Canopy Growth will increase its ownership of Canopy Rivers shares to 27.3% from about 26.5%.

READ: Canopy Growth stock climbs after Piper Jaffray raises price target to $60 from $40

"The advantage of a strengthened Canopy Rivers/Canopy Growth relationship is that it accelerates and de-risks execution for invested companies," said Bruce Linton, Canopy Growth's founder and co-CEO, in a statement.

"By increasing Canopy Growth's investment in Canopy Rivers, we are demonstrating our interest in growing great companies, developing selective opportunities and delivering Canopy's shareholders more growth," added Linton.

The investment is being co-led by CIBC Capital Markets and is expected to close on or around February 27.

New York-based beverage group Constellation Brands Inc (NYSE:STZ) last year invested $4 billion into Canopy, raising its stake to 37% as it becomes bullish on the future of the cannabis industry.

Canopy Growth shares held steady at $46.66 in afternoon trade on Thursday while Canopy Rivers stock slipped 1.92% to $3.57.

Contact Ellen Kelleher at ellen@proactiveinvestors.com

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Thu, 07 Feb 2019 14:04:00 -0500 https://www.proactiveinvestors.com/companies/news/214209/canopy-growth-pours-c30m-into-canopy-rivers-214209.html
<![CDATA[Media files - Buds & Duds: Canopy Growth gains as spinoff completes investment in Italian cannabis company ]]> https://www.proactiveinvestors.com/companies/stocktube/12099/buds--duds-canopy-growth-gains-as-spinoff-completes-investment-in-italian-cannabis-company-12099.html Mon, 04 Feb 2019 16:09:00 -0500 https://www.proactiveinvestors.com/companies/stocktube/12099/buds--duds-canopy-growth-gains-as-spinoff-completes-investment-in-italian-cannabis-company-12099.html <![CDATA[News - Canopy Growth stock climbs after Piper Jaffray raises price target to $60 from $40 ]]> https://www.proactiveinvestors.com/companies/news/213347/canopy-growth-stock-climbs-after-piper-jaffray-raises-price-target-to-60-from-40-213347.html Shares in Canopy Growth Corp (TSE:WEED) (NYSE:CGC) moved higher Friday after Piper Jaffray raised its stock price target on the Canadian cannabis company, saying it is “well positioned” in the emerging and growing market.

MarketWatch reported that analysts Michael Lavery and Jeffrey Kratky raised their target late Thursday to $60 from $40 and reiterated their overweight rating on Canopy.

Canopy's US-listed shares were up 3.6% to $45.78 before the opening bell in New York.

READ: Canada's Canopy Growth shares bloom as it receives license to develop industrial hemp in New York

Piper is expecting the global cannabis market to be worth $250 billion to $500 billion in the long term and to be worth $15 billion to be $50 billion near term.

"We believe the long-term growth can be significant — both from transitioning illicit trade to legal sales, medical sales, and from transitioning sales in health & wellness categories to CBD-infused products," they wrote in a note to clients.

Canopy’s hemp ambitions were bolstered with the receipt of a license from New York state to grow and process the plant.

Hemp does not contain the psychoactive ingredient associated with cannabis but does contain CBD (or cannabidiol), which is of increasing interest to consumers as it is believed to combat a range of health problems, including stress and sleep disorders.

The analysts said Canopy's recent success in receiving a legal hemp license in New York is "a tangible first step forward in the US that points to the beginning of a long US growth trajectory."

Canopy wants to establish a large-scale production center in New York state and it is currently evaluating a number of sites in the Southern Tier. It will be the first such facility outside Canada.

READ: Canopy Growth remains the superior bet when playing cannabis stocks, says Jim Cramer

Canopy said it plans to invest between $100 million and $150 million in the site, which will be able to generate tons of hemp extracts a year.

“The analysts nonetheless trimmed their estimates for an initial sales build. They are now expecting 10,000 kg sold for Canopy in the Canadian recreational market in its fiscal third quarter, down from 14,000 kg, or for C$87 million ($65.3 million),” reported Market Watch.

Hemp also has industrial applications and Canopy wants to establish a large-scale production center in the state and it is currently evaluating a number of sites in the Southern Tier. It will be the first such facility outside Canada.

Canopy said it plans to invest between US$100 million and US$150 million in the site, which will be able to generate tons of hemp extract a year.

New York-based beverage group Constellation Brands Inc (NYSE:STZ), whose shares are up 1.2% at $161, recently invested $4 billion into Canopy, raising its stake to 37% as it becomes bullish on the future of the cannabis industry.

Contact Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive 

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Fri, 25 Jan 2019 07:47:00 -0500 https://www.proactiveinvestors.com/companies/news/213347/canopy-growth-stock-climbs-after-piper-jaffray-raises-price-target-to-60-from-40-213347.html
<![CDATA[News - Canada's Canopy Growth shares bloom as it receives license to develop industrial hemp in New York ]]> https://www.proactiveinvestors.com/companies/news/212534/canada-s-canopy-growth-shares-bloom-as-it-receives-license-to-develop-industrial-hemp-in-new-york-212534.html Shares in Canada's Canopy Growth Corporation (TSE:WEED) (NYSE:CGC) moved higher Monday as its hemp ambitions were bolstered with the receipt of a license from New York state to grow and process the plant.

Hemp does not contain the psychoactive ingredient associated with cannabis but does contain CBD (or cannabidiol), which is of increasing interest to consumers as it is believed to combat a range of health problems, including stress and sleep disorders.

Canopy Growth shares gained nearly 9% to $55.29 in Toronto.

READ: Constellation Brands closes $4B investment in Canopy Growth

Hemp also has industrial applications and Canopy wants to establish a large-scale production center in the state and it is currently evaluating a number of sites in the Southern Tier. It will be the first such facility outside Canada.

Canopy said it plans to invest between US$100 million and US$150 million in the site, which will be able to generate tons of hemp extract a year.

New York-based beverage group Constellation Brands Inc (NYSE:STZ), whose shares are up 1.2% at $161, recently invested US$4 billion into Canopy, raising its stake to 37% as it becomes bullish of the future of the cannabis industry.

Canopy Growth said it will source hemp exclusively from American farmers for the operation, once it is up and running.

The company highlighted in a press release the work of Governor Andrew Cuomo and US Senator Charles Schumer in helping to make the hemp deal happen.

"Governor Andrew M. Cuomo's leadership at the state level led to the creation of the Hemp Research Pilot Program, a standout in the nation," it said.

"US Senator Charles E. Schumer was instrumental in the passage of the Farm Bill, a transformative piece of legislation that gave Canopy Growth the federal guidance it needed to make a significant investment in New York."

Contact Giles at giles@proactiveinvestors.com

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Mon, 14 Jan 2019 14:54:00 -0500 https://www.proactiveinvestors.com/companies/news/212534/canada-s-canopy-growth-shares-bloom-as-it-receives-license-to-develop-industrial-hemp-in-new-york-212534.html
<![CDATA[News - Canopy Growth remains the superior bet when playing cannabis stocks, says Jim Cramer ]]> https://www.proactiveinvestors.com/companies/news/211077/canopy-growth-remains-the-superior-bet-when-playing-cannabis-stocks-says-jim-cramer-211077.html Canopy Growth (NYSE:CGC) is still the “best way” to play the Canadian cannabis market, said Jim Cramer, the much-followed stock-picker and host of CNBC’s “Mad Money”.

Cramer remains more bullish on Canopy Growth than on the Canadian cannabis company Cronos Group Inc (NASDAQ:CRON), the recent beneficiary of a $1.8 billion investment by the tobacco behemoth Altria Group (NYSE:MO).

“Even with Altria investing in Cronos, I believe that Canopy Growth remains the best way to play the Canadian cannabis market,” Cramer said, per a CNBC report.

The benefits Canopy Growth holds over Cronos are scale and the fresh injection of a $4 billion investment by beverage giant Constellation Brands Inc (NYSE"STZ), maker of Corona beer.  

READ: Canopy Growth Corporation splashes $165M on German vape maker

“Can Cronos compare to Canopy Growth? Honestly, it isn’t really a fair comparison,” Cramer said. “Canopy’s significantly larger than Cronos — we’re talking about an $11.4 billion company versus a $2.3 billion company. Canopy’s got scale and scale matters in this business.”

Canopy has a bigger repertoire of cannabis products than Cronos and also maintains its lead against its rival in medical marijuana. Canopy delivered almost 2,200 kilograms of medical cannabis, which was equal to about $23.3 million in sales last quarter, according to CNBC’s findings. Cronos, meanwhile, shipped 515 kilograms, which amounts to about $3.8 million in sales.

Constellation Brands also looks to be a better investor over the long run than Altria, which is finding it tough to widen its business beyond tobacco, said Cramer.

“To me, it seems like Constellation took its time [and] thoughtfully picked the best player to invest in, whereas Altria’s move feels a little rushed, maybe even intemperate and impulsive,” Cramer said. “When I say Canopy has a head-start, we’re talking about a big lead over the competition.”

Canopy Growth shares nudged up 0.42% to $33.31 in Wednesday’s morning trading session while Cronos shares slipped by 0.86% to $12.71.

 

Contact Ellen Kelleher at ellen@proactiveinvestors.com

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Wed, 12 Dec 2018 10:11:00 -0500 https://www.proactiveinvestors.com/companies/news/211077/canopy-growth-remains-the-superior-bet-when-playing-cannabis-stocks-says-jim-cramer-211077.html
<![CDATA[News - Canopy Growth Corporation splashes $165M on German vape maker ]]> https://www.proactiveinvestors.com/companies/news/210689/canopy-growth-corporation-splashes-165m-on-german-vape-maker-210689.html Canopy Growth Corporation (TSE:WEED) (NYSE:CGC) is splashing some of its estimated US$4 billion cash pile on a vape designer and manufacturer.

The giant of the cannabis industry is paying US$165 million (€145 million) for Germany’s Storz & Bickel, with chairman Bruce Linton calling the deal a “marquee acquisition”.

READ: Canopy Growth completes strategic extract supply agreement with MediPharm Labs

He added that the transaction leaves Canopy “well positioned” for the next wave of federally-regulated products in Canada beyond dried flower and edible oils.

“By combining [our] existing designs and Canada's open environment for federally permissible R&D with Storz & Bickel's deep IP portfolio and management team, Canopy Growth is poised to lead the high-margin vaporizing category around the world," Linton explained.

Storz founder Jürgen Bickel will remain with the business.

Swoop fits with strategy

The swoop for S&B fits with Canopy’s strategy, which is to be a “category killer” in the international market for cannabis products.

It sells a wide range of products including the dried plant, oils and capsules for both medical and recreational use.

In August, the beer and spirits group Constellation Brands made a US$3.7 billion (C$5 billion) investment in the business and the two firms are currently working on a cannabis-infused beer.

The global market for medical cannabis is forecast to generate US$180 billion within the next few years.

In 11 countries

Canopy has a presence in 11 countries, including Australia, Germany and Spain.

Most have already legalized cannabis for medical use or are on the cusp of doing so.

Noteworthy is the fact that, while Canopy’s shares are listed in New York, the firm does not conduct business in the United States where cannabis possession is still a federal status.

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Thu, 06 Dec 2018 08:27:00 -0500 https://www.proactiveinvestors.com/companies/news/210689/canopy-growth-corporation-splashes-165m-on-german-vape-maker-210689.html
<![CDATA[News - Canopy Growth completes strategic extract supply agreement with MediPharm Labs ]]> https://www.proactiveinvestors.com/companies/news/210246/canopy-growth-completes-strategic-extract-supply-agreement-with-medipharm-labs-210246.html Canadian cannabis company Canopy Growth Corp (TSX:WEED) (NYSE:CGC) said Thursday that it had entered into a strategic supply agreement with specialized cannabis extractor MediPharm Labs Inc for value-added products.

Under the terms of the 18-month agreement, MediPharm will supply up to 900 kilograms of cannabis extract for sale to Canopy Growth and its subsidiaries. Canopy Growth has committed to purchasing a minimum of 450 kilograms with an option to purchase an additional 450 kilograms.

"As the industry matures we are seeing exciting businesses like MediPharm establish specialized skill sets that will drive the industry forward. Extraction is now and will continue to be an opportunity to develop expertise and intellectual property," said Canopy Growth chairman and co-CEO Bruce Linton.

"We continue to develop our own capacity in this area and are pleased to work with MediPharm," he added.

READ: Canopy Growth loss widens in fiscal 2Q as revenue misses estimates

Canopy said the agreement will establish “an early-mover advantage” for both companies to meet an immediate need across Canada for value-added products such as soft gels.

"We are thrilled to work with Canopy Growth, the world's leading cannabis producer, to deliver the highest quality cannabis oil concentrates for medical patients and recreational consumers," said MediPharm Labs CEO Pat McCutcheon.

"This sales agreement serves as a strong endorsement of MediPharm's industry-leading extraction-only business model," added McCutcheon.

As MediPharm finalizes its Good Manufacturing Practice certification, Canopy Growth said it will explore export opportunities as a part of the strategic agreement.

During the fiscal second quarter, Canopy sold 2,197 kilograms and kilogram equivalents of cannabis at an average sale price of $9.87, up from 2,020 kilograms and kilogram equivalents at an average price of $7.99 in the prior year period. Kilograms of cannabis produced from harvests, meanwhile, soared 265% to 15,127.

Sales of oils, including Canopy’s softgel capsules, accounted for 34% of its product revenue, up from 18% in the corresponding period last year.

Canopy was on the receiving end of a $5 billion investment from the maker of Corona beer Constellation Brands. 

Shares in Canopy Growth tumbled 4.18% to $32.58 Thursday in the New York Stock Exchange and were down 3.5% to C$43.53 on the Toronto Stock Exchange.

 

Contact Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive 

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Thu, 29 Nov 2018 10:39:00 -0500 https://www.proactiveinvestors.com/companies/news/210246/canopy-growth-completes-strategic-extract-supply-agreement-with-medipharm-labs-210246.html
<![CDATA[News - Canopy Growth loss widens in fiscal 2Q as revenue misses estimates ]]> https://www.proactiveinvestors.com/companies/news/209188/canopy-growth-loss-widens-in-fiscal-2q-as-revenue-misses-estimates-209188.html Shares of Canopy Growth (TSX:WEED; NYSE:CGC) slipped before Wednesday’s opening bell after the Canadian cannabis company posted a widening of its losses in its fiscal second-quarter and revenue that missed Wall Street’s estimates.

For the three months ended on September 30, Canopy’s net loss came to C$330.61 million, or $1.52 per share, compared with a loss of $1.61 million or $0.01 per share in the corresponding period last year. The company said that $115.7 million in expenses accounted for $0.52 of the reported $1.52 loss in the quarter.

Its revenue, meanwhile, came in at $23.3 million, falling short of the consensus estimate of $59 million.

Disappointed by the results, investors sent Canopy Growth shares down 8.5% to $35.22 in pre-market trading.

Sales of oils, including Canopy’s softgel capsules, accounted for 34% of its product revenue, up from 18% in the corresponding period last year.

READ: Canopy Growth acquires assets of Colorado-based Ebbu to speed up cannabis research programs

During the quarter, Canopy sold 2,197 kilograms and kilogram equivalents of cannabis at an average sale price of $9.87, up from 2,020 kilograms and kilogram equivalents at an average price of $7.99 in the prior year period. Kilograms of cannabis produced from harvests, meanwhile, soared 265% to 15,127.

"With extensive investments over the past year, including most notably in the second quarter, in branding and retail development, our entrance into the retail cannabis market has been a success with our SKU assortment obtaining over 30% listings market share in multi-store physical retail store networks nationwide," chairman and co-CEO Bruce Linton said in a statement.

READ: Why Canopy Growth’s deal with Constellation was the best - and worst - thing for the shares

"With substantial product inventories on hand, new product formats coming to market as planned, a captive sales force driving increased demand through physical retail stores and increasing internal and channel efficiencies, we believe based on market conditions today that we will attain significant and sustainable market share of the Canadian recreational market," Linton added.

The company ended the second quarter with supply commitments to Canada’s provinces and territories of 70,000 kg, not including Ontario.

During the quarter, Canopy was on the receiving end of a $5 billion investment from the US beverage company and maker of Corona beer Constellation Brands, which closed subsequent to the quarter. The funds will be spent on intellectual property development and replicating Canopy’s Canadian platform across a number of international markets.

Contact Ellen Kelleher at ellen@proactiveinvestors.com

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Wed, 14 Nov 2018 08:06:00 -0500 https://www.proactiveinvestors.com/companies/news/209188/canopy-growth-loss-widens-in-fiscal-2q-as-revenue-misses-estimates-209188.html
<![CDATA[News - Shorts to hike positions in cannabis majors Canopy Growth, Aurora Cannabis, Cronos Group and Tilray, says S3 Partners ]]> https://www.proactiveinvestors.com/companies/news/208953/shorts-to-hike-positions-in-cannabis-majors-canopy-growth-aurora-cannabis-cronos-group-and-tilray-says-s3-partners-208953.html Short trading in cannabis stocks is seen increasing further in the major companies of the sector because they remain a profitable, if expensive, bet for market players, a report by analytics company S3 Partners said Friday.

"We can expect more momentum short trading in the more largely shorted, more liquid and larger capitalized securities such as Canopy Growth Corp (NYSE:CGC), Aurora Cannabis Inc (NYSE:ACB), Cronos Group Inc (NASDAQ:CRON) and Tilray Inc (NASDAQ:TLRY)," said a report by Ihor Dusaniwsky, the managing director of Predictive Analytics at S3 Partners, a company that specializes in research on the short side of the market.

The rally in the cannabis sector in 2018 prompted short sellers to add billions of dollars of exposure since the middle of the year, as they bet on a reversal in what they feel is an overheated and overvalued sector.

Short interest in the Cannabis Sector has climbed to over $3.35 billion, with the biggest shorts being Canopy Growth $CGC, Aurora Pharma $ACB, Tilray $TLRY, GW Pharma $GWPH and Cronus $CRON. New research note: https://t.co/n6j5mZhXRS pic.twitter.com/txDP11KEGP

— Ihor Dusaniwsky (@ihors3) November 9, 2018

"Short interest is now $3.35 billion in the 141 securities we track in our cannabis basket. While short interest in the sector continues to grow in 2018, exposure is very extremely concentrated, with 94% of the short interest in only 10 securities," said Dusaniwsky.

The cannabis sector gyrated sharply this week, rallying over 8% Wednesday on news that Attorney General Jeff Sessions' resignation would lead to a loosening of US cannabis policy. A day later, the stocks gave back most of their gains after investors realized immediate changes to the policy was not coming soon.

READ: Tilray shorts fell by about 45,000 in the past week, says S3 Partners

Short-selling the sector is profitable, but the cost to borrow the stock is steep, with the average borrow fee in the sector at 13.44% and short-sellers spending heavily for financing costs. The fee in other companies would usually be seen at much lower levels.

The rate to borrow Tilray stock is a 38% fee and that for Cronos is a 42% fee.

"We should expect short-selling in the cannabis sector to continue to grow, providing a slight counterbalance to the long buying frenzy and also providing trading liquidity in some of the less broadly traded securities," said Dusaniwsky.

He added: "As price volatility and momentum continues to increase in the sector, short sellers will become more active entering and exiting their positions as shorter term trades become larger Alpha generators."

Reporting by Rene Pastor, contactable on rene.pastor@proactiveinvestors.com

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Fri, 09 Nov 2018 13:28:00 -0500 https://www.proactiveinvestors.com/companies/news/208953/shorts-to-hike-positions-in-cannabis-majors-canopy-growth-aurora-cannabis-cronos-group-and-tilray-says-s3-partners-208953.html
<![CDATA[News - Constellation Brands closes $4B investment in Canopy Growth ]]> https://www.proactiveinvestors.com/companies/news/208432/constellation-brands-closes-4b-investment-in-canopy-growth-208432.html Constellation Brands Inc (NYSE:STZ), the maker of Corona beer, has closed its $4 billion investment (C$5.24bn) in the Canadian cannabis company Canopy Growth Corp (NYSE:CGC, TSX:WEED).

The transaction, which was unveiled last August, was approved by a majority of Canopy Growth shareholders. It has also been awarded the requisite approvals by regulators, including by the Canadian government under the Investment Canada act.

Constellation’s latest investment brings its stake in the company to 37%. The company held a 9.9% stake in October 2017 with the option for future investments.

READ: Constellation Brands ups stake in Canopy Growth, invests an additional US$4bn

The investment provides Canopy Growth with substantial funding to build scale in more than 30 countries where medical cannabis programs are permissible. It also establishes the necessary foundation required to supply recreational marijuana as cannabis becomes legal.

“We’re excited to expand our strategic partnership with Canopy Growth and to begin helping them build the global scale needed to win long-term,” said Rob Sands, CEO of Constellation Brands.

Canopy Growth CEO Bruce Linton was similarly bullish about the tie-up. “This investment was a landmark moment for the entire sector when it was announced. Now that the capital is Canopy’s to deploy, we’re going to quickly get to work increasing our lead by adding strategic assets around the world,” Linton noted in a statement.

As part of the new partnership, Canopy Growth’s board will be redrafted. Taking seats on the board will be Constellation's chief operating officer Bill Newlands and its chief financial officer David Klein, as well as current Constellation board members Judy Schmeling and Robert Hanson.

Based in Smiths Falls, Ontario, Canopy Growth is a diversified cannabis and hemp company, offering distinct brands and curated cannabis varieties in dried, oil and Softgel capsule forms.

Canopy Growth shares held steady at $37.10 in Friday’s morning trade session and shares of Constellation Brands were also flat at $201.78.

Contact Ellen Kelleher at ellen@proactiveinvestors.com

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Fri, 02 Nov 2018 09:34:00 -0400 https://www.proactiveinvestors.com/companies/news/208432/constellation-brands-closes-4b-investment-in-canopy-growth-208432.html
<![CDATA[News - Cannabis short-sellers picked up more than $450M in gains on two-day price weakness, says S3 Partners ]]> https://www.proactiveinvestors.com/companies/news/207774/cannabis-short-sellers-picked-up-more-than-450m-in-gains-on-two-day-price-weakness-says-s3-partners-207774.html Short-sellers in cannabis stocks, which had been on an extended rally ahead of the legalization of marijuana in Canada last week, are up more than $450 million on recent price weakness in the sector, according to analytics company and short specialist S3 Partners.

A report by Ihor Dusaniwsky said the ETFMG Alternative Harvest ETF (NYSEArca:MJ), Horizons Marijuana Life Sciences ETF (HMMJ.TO) and Evolve Marijuana ETF (SEED.TO) were up over 30% by October 15th and are now down more than 20% since then, including an 8%-plus drop on Tuesday.

Cannabis stock short sellers up $450 million in mark-to-market profits over the last two days of price weakness. $CGC $ACB $TLRY $GWPH $CRON See our research note on https://t.co/TdesABFLln https://t.co/b4eg8JcIDN pic.twitter.com/CNOmJSRvLi

— Ihor Dusaniwsky (@ihors3) October 24, 2018

"At the moment, there is a large concentration of short selling in the sector, with only seven stocks having over $100 million in short interest and the top twenty shorts in the Cannabis sector making up over 98% of the total short interest in the sector," Dusaniwsky said.

Shorting the cannabis sector is not cheap, he added, with the average fee on outstanding shorts running between 15% and 43%, with the fee for Tilray Inc (NASDAQ:TLRY) alone costing up to 72% to borrow.

READ: Waiting to inhale? Cannabis stocks like Tilray are only going to go higher

"One of the reasons for the high cost is the relative lack of institutional holders in these securities due to the fact that many of these securities trade in Canada or the OTC market in the US. which precludes some long only funds from holding them in their portfolios," the S3 analyst said.

Another reason for institutional investors shying away from cannabis is the sector's characterization as a "sin" stock along with tobacco, liquor, gambling and gun stocks. This precludes some long-only funds from participating. "Once institutional ownership increases in the sector we can expect stock borrow costs to decline significantly," he said.

For now, the short interest in the sector is growing slowly with some demand seen in Canopy Growth Corp (NYSE:CGC), Aphria Inc (OTC:APHQF) and Tilray among others.

READ: Recent cannabis stock volatility not dampening industry prospects

"If the cost to borrow cannabis stocks begins to cheapen in the larger cap names, we may see more short sellers enter this over-heated sector looking for stock prices to ease back down to more reasonable value based multiples," Dusaniwsky said.

"In the meantime, large institutional short sellers will be standing on the sidelines until the smoke clears and further large price drops will be due to longs shareholders selling stock to realize some of their profits," he concluded.

Canada legalized cannabis on October 17. The sector has swung wildly in volatile trade and become a battleground between bulls and shortsellers in the market. 

Reporting by Rene Pastor, contactable on rene.pastor@proactiveinvestors.com  

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Wed, 24 Oct 2018 10:56:00 -0400 https://www.proactiveinvestors.com/companies/news/207774/cannabis-short-sellers-picked-up-more-than-450m-in-gains-on-two-day-price-weakness-says-s3-partners-207774.html
<![CDATA[Media files - CryptoCann™ Report: Barclays reportedly puts crypto plans on the back burner; Uber and Lyft offer discounts to discourage driving while high ]]> https://www.proactiveinvestors.com/companies/stocktube/10856/cryptocann-report-barclays-reportedly-puts-crypto-plans-on-the-back-burner-uber-and-lyft-offer-discounts-to-discourage-driving-while-high-10856.html Mon, 15 Oct 2018 13:44:00 -0400 https://www.proactiveinvestors.com/companies/stocktube/10856/cryptocann-report-barclays-reportedly-puts-crypto-plans-on-the-back-burner-uber-and-lyft-offer-discounts-to-discourage-driving-while-high-10856.html <![CDATA[News - Canopy Growth acquires assets of Colorado-based Ebbu to speed up cannabis research programs ]]> https://www.proactiveinvestors.com/companies/news/207116/canopy-growth-acquires-assets-of-colorado-based-ebbu-to-speed-up-cannabis-research-programs-207116.html Canopy Growth Corporation (TSX:WEED) (NYSE:CGC) announced on Monday it has agreed to acquire the assets of Ebbu Inc, a Colorado-based hemp researcher which will complement and accelerate several initiatives under its group of companies.

Intellectual property and R&D advancements achieved by Ebbu's team will flow directly to Canopy Growth's hemp and THC-rich cannabis genetic breeding program and its cannabis-infused beverage capabilities, the company said in a statement.

In addition, Ebbu's IP portfolio will contribute to the clinical formulations program being executed by Canopy Health Innovations, a wholly owned subsidiary of the company. Canopy Growth operates a field-scale hemp operation based in Saskatchewan. By applying Ebbu's IP, that will have the potential to vastly reduce the cost of CBD production, a sought-after cannabinoid in both the wellness and medical spaces.

"Beyond the technological edge this transaction provides, we are pursuing this acquisition because Canopy shares Ebbu's core ethos of building consumer trust," said Mark Zekulin, the Co-CEO and president of Canopy Growth. 

READ: Canopy Growth cements strategic tie-up with Centric Health to supply medical cannabis

Canopy Growth, through a newly formed subsidiary, will employ Ebbu's assets and personnel to conduct R&D. There will be no production or sale of products resulting from such R&D in the United States unless and until it would be federally legal to do so.

At closing, Canopy Growth will pay C$25 million in cash and issue 6,221,210 of the company's common shares to ebbu in exchange for the assets being acquired. A further C$100 million in purchase price shall be payable if certain scientific related milestones are achieved within two years following the closing.

Canopy Growth will have the option of satisfying such milestone payments in cash, shares or a combination of cash and shares. If such payments are satisfied in shares, the number of shares shall be calculated based on the volume weighted average price of the shares on the TSX for the 20 trading days immediately prior to the date of achievement of the applicable milestone.

Shares of Canopy Growth in Canada were up 9.78% to C$71.25. The shares in New York gained 10.09% to US$54.82.

The transaction requires regulatory approval by the Toronto Stock Exchange and New York Stock Exchange. The acquisition is expected to close in November 2018.

Canopy Growth is a diversified cannabis and hemp company, offering distinct brands and curated cannabis varieties in dried, oil and Softgel capsule forms.

Canopy Growth is based in Smiths Falls, Ontario.

Reporting by Rene Pastor, contactable on rene.pastor@proactiveinvestors.com

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Mon, 15 Oct 2018 13:38:00 -0400 https://www.proactiveinvestors.com/companies/news/207116/canopy-growth-acquires-assets-of-colorado-based-ebbu-to-speed-up-cannabis-research-programs-207116.html
<![CDATA[News - Veritas kicks off coverage of Canada's cannabis industry with Sell ratings Canopy Growth, Aphria, Aurora Cannabis and Cronos ]]> https://www.proactiveinvestors.com/companies/news/207016/veritas-kicks-off-coverage-of-canada-s-cannabis-industry-with-sell-ratings-canopy-growth-aphria-aurora-cannabis-and-cronos-207016.html A pessimistic stock analyst from Veritas Investment Research is initiating his coverage of Canada’s cannabis stocks with four Sell ratings on Canopy Growth (NYSE:CGC), Aphria (OTCMKTS:APHQF),  Aurora Cannabis (OTCMKTS:ACBFF) and Cronos Group (NASDAQ:CRON).

In a note dubbed “End of the Rainbow”, Veritas’s Stuart Rolfe write that he believes Canada’s cannabis industry “looks wildly overvalued” even if 60% of the country’s black market converts to legal sales following the country’s legalization of recreational marijuana next week.

Rolfe makes the point that eager investors have already driven stock valuations for the eight-largest publicly-traded Canadian cannabis producers to a combined market cap of $55 billion on trailing twelve months sales of $250 million at a time when “oversupply risks are rampant”.

READ: Canadian regulators release pivotal review showing cannabis companies not providing enough disclosure

“Our analysis suggests that the market still lacks perspective when it comes to the size, shape and sustainability of Canada’s proverbial pot of gold,” argues Rolfe.

Uncertain pricing, the presence of a hyper-competitive black market and inordinately high expectations for profits are just three of the factors leading Rolfe to conclude that Canadian cannabis valuations are “at risk of falling precipitously.”

Canopy Growth has much to lose if markets disappoint

Drilling down to the details, Rolfe views the medical marijuana company Canopy Growth as having an intrinsic value of C$30, per a report in the business news site TheFly. He thinks the Ontario-based company seems to have “the most to lose if market conditions disappoint” as it “bet heavily on brand power and novel formulations”. While Canopy is “well-positioned” for scale and should get its product to customers, Rolfe argues that its branding efforts might draw negative attention from regulators. Canopy’s cost disclosures are also among the “least compelling and perhaps least consistent,” according to Rolfe.

Move onto Aphria and Rolfe takes a more sympathetic view, calling the company a “star unicorn” and praising its useful disclosure on strategies and operations. Rolphe says Aphria’s focus on cost management, cash-flow generation and accounting bodes well for its performance. He also thinks Aphria is “best positioned” to become a takeout candidate if industry consolidation gathers pace. Rolfe sets its price target at C$19.

Aurora suffers from being a 'touch unfocused'

The analyst’s take on Aurora, meanwhile, remains mixed, according to TheFly. Via acquisitions, Aurora has morphed into one of the largest scale bets on cannabis capacity available to investors, but its approach seems to be “a touch unfocused”, according to Rolfe. The company’s loss of momentum has corrected its valuation. But the capacity Aurora has built through a string of acquisitions is “remarkable” and could pose a threat to competitors. Rolfe sets the target at C$13 for Aurora shares.

Lastly, Rolfe adopts a harsher view of Cronos Group, calling it “an undifferentiated grower” with a few “solid” cannabis-related investments. Rolfe stresses that some of Cronos’s investments may be plateauing and not adding growth. Without an “ahead-of-the-game” strategy for its capital deployment, he sees few upside catalysts for the Toronto-based company. While its current capabilities are “overvalued”, Cronos might be able to benefit, however, by pushing further internationally and into the market for medical cannabis. Rolfe sets a price target of $4.50 for Cronos shares.

Cronos shares traded nearly 7% higher at $9.66 in Friday’s afternoon trade while Aphria shares fell 2.5% to $14.72. Aurora Cannabis shares picked up 5.25% to hit $10.22 and Canopy Growth added 4.2% to reach $49.15.

Contact Ellen Kelleher at ellen@proactiveinvestors.com

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Fri, 12 Oct 2018 13:56:00 -0400 https://www.proactiveinvestors.com/companies/news/207016/veritas-kicks-off-coverage-of-canada-s-cannabis-industry-with-sell-ratings-canopy-growth-aphria-aurora-cannabis-and-cronos-207016.html
<![CDATA[News - Canopy Growth shares rise as it completes legal medical cannabis export to US from Canada ]]> https://www.proactiveinvestors.com/companies/news/206686/canopy-growth-shares-rise-as-it-completes-legal-medical-cannabis-export-to-us-from-canada-206686.html Shares of Canopy Growth Corporation (TSE:WEED, NYSE:CGC) firmed up Tuesday in premarket trade after the Canadian cannabis grower said it had completed a legal transfer of cannabis products to a research partner in the US.

Just last month, shares in Tilray Inc (NASDAQ:TLRY) had shot up after it announced that the US Drug Enforcement Administration (DEA) had approved the import of a Canadian cannabinoid study drug made by the company for a clinical trial at the University of California, San Diego. 

Both Canopy Growth and Tilray’s shipments were for the sole purpose of supporting medical research and development, with permits from the DEA.

"The United States presents a unique market opportunity and as the most established cannabis business in the world we, in turn, offer a unique ability to advance standardization, IP development, and clinical research that can improve the understanding and legal application of cannabis and cannabinoids," Mark Zekulin, Co-CEO of Canopy Growth said in a statement.

READ: Tilray receives approval from US to import a medical cannabis study drug, shares soar almost 30%

"By engaging in the market through federally legal means and with the right partners, we can create a US-based centre of expertise while also supporting our rapidly expanding global business," added Zekulin.

Shares of the Canadian cannabis company climbed 1.5% to $51.19 before the opening bell.

Canopy has been riding high this summer, securing a multi-billion investment from beer giant Constellation Brands Inc (NYSE:STZ) and inking deals with Health Canada to increase its growing capacity.

Cowen analyst Vivien Azer, a senior research analyst in the beverage, tobacco and cannabis sectors, has an Outperform rating on the stock and expects the $4 billion cash infusion from Constellation Brands, the maker of Corona beer, to give Canopy Growth a head start in international markets.

Contact Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive 

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Tue, 09 Oct 2018 08:37:00 -0400 https://www.proactiveinvestors.com/companies/news/206686/canopy-growth-shares-rise-as-it-completes-legal-medical-cannabis-export-to-us-from-canada-206686.html
<![CDATA[News - Canadian cannabis stocks have more than doubled since Constellation deal with Canopy Growth, says Stifel ]]> https://www.proactiveinvestors.com/companies/news/205352/canadian-cannabis-stocks-have-more-than-doubled-since-constellation-deal-with-canopy-growth-says-stifel-205352.html Tilray Inc (NASDAQ:TLRY) was the talk of the town Wednesday as it took shareholders on a wild ride with trading halted twice. Its shares nearly doubled from its previous close, dipped into negative territory and then soared again just before the closing bell to end the day on a high note.

The cannabis company’s performance pushed the total market capitalization for Canadian Licensed Producers above $C80bn at its peak, closing at around C$73bn, as per a Stifel note shared by TheFly.com.

READ: Constellation Brands ups stake in Canopy Growth, invests an additional US$4bn

Tilray’s performance was impressive, but Canadian cannabis stocks have been on the rise since Constellation Brands Inc (NYSE:STZ), the maker of Corona beer, invested an additional US$4bn in Canopy Growth Corp (NYSE:CGC, TSX:WEED).

Since then, Canadian cannabis stocks have soared 127%, according to Stifel analyst Christopher Growe.

The analyst estimates the Canadian market to be worth around C$10bn, so more global opportunities will need to present themselves for the valuations to be realized.

Canada is set to legalize cannabis this fall, but no other countries have announced similar plans just yet.

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Thu, 20 Sep 2018 09:54:00 -0400 https://www.proactiveinvestors.com/companies/news/205352/canadian-cannabis-stocks-have-more-than-doubled-since-constellation-deal-with-canopy-growth-says-stifel-205352.html
<![CDATA[News - Why Canopy Growth’s deal with Constellation was the best - and worst - thing for the shares ]]> https://www.proactiveinvestors.com/companies/news/205260/why-canopy-growths-deal-with-constellation-was-the-best-and-worst-thing-for-the-shares-205260.html For Canadian cannabis company Canopy Growth Corp (NYSE:CGC, TSX:WEED), an additional US$4bn investment from beer producer Constellation Brands Inc (NYSE:STZ) may have felt like a godsend, boosting its shares double digits after less-than-impressive quarterly results.

However, trader and market commentator Tim Collins said the deal may be the worst thing to ever happen to Canopy in the short-term, shaping the company’s narrative in a way that makes unattached Tilray Inc (NASDAQ:TLRY) the more appealing cannabis stock.

$CGC getting money from $STZ may have been the worst thing that could happen to it (short-term) from a stock performance standpoint when you compare it to $TLRY

However, unless TLRY gets a cap raise done soon, CGC made the better long-term move

— Tim Collins (@RetroWallSt) September 18, 2018

“Everyone loves a mystery; the excitement of the unknown, the potential of what may come,” Collins told Proactive Investors in an email. “Without a deal, bulls can dream about whatever potential fits their narrative.”

The deal gave Constellation a 38% stake with the option to scoop up even more shares, bringing its ownership stake to 50%.

READ: Cannabis short-sellers may be forced to cover soon as huge losses pile up, says S3 Partners

Constellation can buy another 88.5 million shares for just over US$40 per share and then an additional 51.3 million shares at the volume weight average price at the time of exercise.

“The potential for a ‘dream’ deal is gone. Pushing shares speculatively higher loses appeal when Constellation can buy them ‘below’ market. Would they quickly sell? Probably not, but you can never say never,” said Collins.

Canopy secured long-term stability via its deal, but lightning almost never strikes the same place twice.

It’s unlikely another deal like this will come its way, shifting investor attention to the potential of other cannabis stocks, like Tilray.

“Anticipation flew past unabated excitement straight into delirium and short-squeezes,” said Collins, who is well-known for his options trading strategies.

However, don’t expect Canopy Growth to go up in smoke anytime soon.

READ: StoneCastle Cannabis Growth Fund gives investors exposure to high-flying cannabis stocks

When comparing the two cannabis companies, Collins notes that at the end of the day, Canopy has the money in the bank.

Tilray has the higher market cap but Canopy has US$4bn in cash while Tilray’s balance sheet is less impressive.

The company raised around US$150mln in its initial public offering in July, but Collins forecasts a secondary offering on the horizon if Tilray doesn’t land a multi-billion dollar deal of its own.

“It's going to need a doozy of a deal to keep the price elevated. It's simply hard to imagine any big name will pay significantly more in terms of valuation than what Constellation paid for CGC,” said Collins.

For those debating between Canopy Growth and Tilray, Collins said that he would bet on the company with money in the bank rather than money on paper.

--At the time of publication, Collins had a position in Tilray put butterfly options

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Wed, 19 Sep 2018 14:42:00 -0400 https://www.proactiveinvestors.com/companies/news/205260/why-canopy-growths-deal-with-constellation-was-the-best-and-worst-thing-for-the-shares-205260.html
<![CDATA[News - StoneCastle Cannabis Growth Fund gives investors exposure to high-flying cannabis stocks ]]> https://www.proactiveinvestors.com/companies/news/204956/stonecastle-cannabis-growth-fund-gives-investors-exposure-to-high-flying-cannabis-stocks-204956.html Relax and inhale. The marijuana rally still isn’t over, says Bruce Campbell, founder of StoneCastle Investment Management Inc, who is launching Canada’s first large cannabis mutual fund Friday.

The StoneCastle Cannabis Growth Fund comes into play a month before recreational cannabis is set to become legal in Canada on October 17.

“I wouldn’t be surprised if we saw a steep, sharp pullback, which will scare all the people that got in late, have a little bit of consolidation, and then we start the next phase up,” Bruce Campbell, founder of StoneCastle Investment Management Inc., which has about C$150mln (US$115mln) in assets, told Bloomberg.

Campbell advised investors to get ready for some more “scary down days” just as cannabis-related stocks tumbled Thursday following a report that the US may bar Canadians who invest in the companies from entering the country.

A Politico headline shrilled that “Canadian marijuana users, workers and investors risk lifetime border ban.”

“The move has potential to disrupt border crossings between the US and Canada for travelers who run afoul of American drug laws, even if their activities are legal in Canada,” reported Politico, quoting Todd Owen, executive assistant commissioner for the Office of Field Operations.

Owen gave Politico a detailed preview of how the US Customs and Border Protection agency will continue to apply long-standing US federal laws that treat marijuana as a banned substance and participants in the cannabis industry as drug traffickers.

The cannabis market may still have upside after a period of consolidation as the hype surrounding Big Alcohol/Big Tobacco partnerships continue to generate headlines. Cannabis stocks which retreated over the last few trading days found their mojo Friday with Canopy Growth Corp (NYSE:CGC) up 6.2% to US$46.84 and Cronos Group Inc (NASDAQ:CRON) up a similar 6.7% to US$10.79.

Contact Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive 

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Fri, 14 Sep 2018 10:43:00 -0400 https://www.proactiveinvestors.com/companies/news/204956/stonecastle-cannabis-growth-fund-gives-investors-exposure-to-high-flying-cannabis-stocks-204956.html
<![CDATA[News - Canopy Growth cements strategic tie-up with Centric Health to supply medical cannabis ]]> https://www.proactiveinvestors.com/companies/news/204252/canopy-growth-cements-strategic-tie-up-with-centric-health-to-supply-medical-cannabis-204252.html Centric Health Corporation (TSX:CHH) announced Wednesday that it has entered into multi-year supply and service agreements with Canopy Growth Corporation (TSX:WEED, NYSE:CGC) for the provision of medical cannabis.

Canopy Growth will be the preferred education partner and supplier of choice of medical cannabis primarily through its Spectrum Cannabis brand to Centric Health and the seniors that it serves both in long-term care and retirement residences, as well as seniors living in the community.

"We believe that our partnership with Centric Health will help reduce many of the existing gaps in the continuing care space by having a trusted partner at our side who can provide education, assist in policy development and, most importantly, provide clinical pharmacist oversight of medical cannabis through medication management," said Mark Zekulin, president and co-CEO of Canopy Growth. "The continuing care space is comprised of a patient population that can greatly benefit from the therapeutic effects of medical cannabis."

READ: Canopy Growth shares jump after Cowen analyst raises price target

As part of a separate business development agreement, Canopy Growth will advance funds to Centric Health to educate clinical pharmacists, as well as other healthcare partners, residents and seniors and their families, on the benefits and potential applications of medical cannabis.

In exchange, Centric Health issued 850,000 warrants to Canopy Growth at an exercise price of C$0.25 per common share for a life of 48 months with the vesting date set at September 4, 2020.

"Our strategic relationship with Canopy Growth leverages Centric's national specialty pharmacy footprint and respected clinical pharmacists with their sophisticated educational platform and range of medical cannabis products, including the Spectrum Cannabis line that makes it easy for seniors to understand the strength and dosage of the medical cannabis they are using as part of their treatment program," said Centric Health CEO David Murphy.

Murphy said the partnership would ensure seniors and home operators would have the “best possible support” and oversight for medical cannabis treatments.

READ: Canopy Growth to increase growing capacity after receiving amended licenses from Health Canada

Canopy has been riding high this summer, securing a multi-billion investment from beer giant Constellation Brands Inc (NYSE:STZ) and inking deals with Health Canada to increase its growing capacity.

Cowen analyst Vivien Azer, a senior research analyst in the beverage, tobacco and cannabis sectors, reiterated an Outperform rating and raised the company’s price target to C$74 from C$56 on Tuesday.

Azer expects the US$4bn cash infusion from Constellation Brands, the maker of Corona beer, to give Canopy Growth a head start in international markets.

Shares of Canopy Growth were down 2.2% to US$51.34 in the New York stock Exchange and 2.4% to C$67.15 in the Canadian stock exchange.

Contact Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive

(Updates with additional quotes from company officials, business development pact) 

 

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Wed, 05 Sep 2018 10:40:00 -0400 https://www.proactiveinvestors.com/companies/news/204252/canopy-growth-cements-strategic-tie-up-with-centric-health-to-supply-medical-cannabis-204252.html
<![CDATA[News - Canopy Growth shares jump after Cowen analyst raises price target ]]> https://www.proactiveinvestors.com/companies/news/204157/canopy-growth-shares-jump-after-cowen-analyst-raises-price-target-204157.html Cannabis company Canopy Growth Corporation (TSX:WEED, NYSE:CGC) has been riding high this summer, securing a multi-billion investment from beer giant Constellation Brands Inc (NYSE:STZ) and inking deals with Health Canada to increase its growing capacity.

Cowen analyst Vivien Azer, a senior research analyst in the beverage, tobacco and cannabis sectors, reiterated an Outperform rating and raised the company’s price target to C$74 from C$56.

READ: Canopy Growth to increase growing capacity after receiving amended licenses from Health Canada

Azer met with Canopy Growth’s management and said she was confident in the company’s “ability to establish an early lead in the adult use cannabis market, as well as domestic and international medical cannabis markets,” as per a note shared by TheFly.com.

Its US$4bn cash infusion from Constellation Brands, the maker of Corona beer, is expected to give the company a head start in international markets, according to the analyst.

The company operates 10 licensed cannabis production sites with over 2.7 million square feet of fully-licensed production capacity.

Shares of the Ontario-based company were up more than 4% to US$47.63 in Tuesday Morning trading.

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Tue, 04 Sep 2018 10:02:00 -0400 https://www.proactiveinvestors.com/companies/news/204157/canopy-growth-shares-jump-after-cowen-analyst-raises-price-target-204157.html
<![CDATA[Media files - CryptoCann™ Report: Teen hacker allegedly steals US$1mln in crypto via SIM card scheme; Cannabis lighting company Solis Tek adds Peter Najarian to board ]]> https://www.proactiveinvestors.com/companies/stocktube/10229/cryptocann-report-teen-hacker-allegedly-steals-us1mln-in-crypto-via-sim-card-scheme-cannabis-lighting-company-solis-tek-adds-peter-najarian-to-board-10229.html Thu, 23 Aug 2018 15:36:00 -0400 https://www.proactiveinvestors.com/companies/stocktube/10229/cryptocann-report-teen-hacker-allegedly-steals-us1mln-in-crypto-via-sim-card-scheme-cannabis-lighting-company-solis-tek-adds-peter-najarian-to-board-10229.html <![CDATA[News - CryptoCann™ Report: Teen hacker allegedly steals US$1mln in crypto via SIM card scheme; Cannabis lighting company Solis Tek adds Peter Najarian to board ]]> https://www.proactiveinvestors.com/companies/news/203508/cryptocann-report-teen-hacker-allegedly-steals-us1mln-in-crypto-via-sim-card-scheme-cannabis-lighting-company-solis-tek-adds-peter-najarian-to-board-203508.html Cryptocurrency thefts are on the rise this year with exchanges like Bithumb and Coinrail losing millions at the hands of hackers.

A California teen was arrested for allegedly stealing more than US$1mln in Bitcoin via a cellphone hijacking scheme, as per a CoinTelegraph report.

The teen reportedly used a “SIM swapping” technique, a process in which hackers have telecom providers transfer a person’s phone number to a SIM card and then use the phone number to reset passwords on cryptocurrency exchange accounts.

Photos of the hacker’s spoils, including a 2018 McLaren luxury sportscar, were reportedly posted to Instagram.

A US investor and co-founder of an angel group for Bitcoin investors sued AT&T for US$224mln earlier this month when his cryptocurrency was stolen via a similar scheme. He argued that the wireless carrier was complicit in the theft by not following the proper safety measures to transfer his information.

The Cann' Report

Solis Tek Inc (OTCQB:SLTK), a horticulture lighting specialist, welcomed a famous face to its board of directors.

Peter Najarian, a contributor to CNBC’s “Halftime Report” and “Fast Money”, will join the board of the cannabis tech company.

“With my experience in capital markets, I am positioned to provide knowledge that will help Solis Tek achieve its mission to bring safe, consistent and quality products to patients and legal consumers,” said Najarian in a press release.

Tiffany Davis, Solis Tek’s chief operating officer, will also a new addition to the board.

An RBC Capital Markets analyst estimated that the legal cannabis market in the US could be worth US$47bn within a decade, as per a Business Insider report.

Analyst Nik Modi said recreational use, particularly concentrates and edibles, is driving the market’s growth.

"Estimates already suggest that the US category alone is $50 billion, which compares to spirits $58 billion, wine $65 billion, and beer $117 billion," wrote Modi. The US$50bn estimate includes illegal sales as well.

The analyst praised Constellation Brands Inc’s (NYSE:STZ) recent US$4bn investment in Canadian cannabis company Canopy Growth Corp (NYSE:CGC), saying that more companies should have “the foresight to invest in future revenue streams.”

Cannabis-focused private equity firm CannaRoyalty Corp (CNSX:CRZ) reported its second-quarter results.

The Ontario-based company reported earnings of C$0.18 per share on revenue of C$3.5mln

Back in the US, MedMen Enterprises Inc (OTC:MMNFF) signed a deal granting the cannabis company the use of the Woodstock name.

The company has the right to manufacture and distribute Woodstock branded cannabis products in six states, including California and Nevada.

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Thu, 23 Aug 2018 12:04:00 -0400 https://www.proactiveinvestors.com/companies/news/203508/cryptocann-report-teen-hacker-allegedly-steals-us1mln-in-crypto-via-sim-card-scheme-cannabis-lighting-company-solis-tek-adds-peter-najarian-to-board-203508.html
<![CDATA[News - Canopy Growth to increase growing capacity after receiving amended licenses from Health Canada ]]> https://www.proactiveinvestors.com/companies/news/203401/canopy-growth-to-increase-growing-capacity-after-receiving-amended-licenses-from-health-canada-203401.html Canopy Growth Corp (CSE:WEED, NYSE:CGC) will be able to increase its growing capacity after receiving amended licenses from Health Canada.

The Canadian cannabis company will nearly double its growing capacity at its Smith Falls Campus in Ontario, the former site of a Hershey’s chocolate factory.

READ: Cronos shares jump after reaching supply deals in Canada

The Ontario campus has also received a license for an automated distribution center.

“The new highly automated Distribution Centre is critical to operating in an efficient and cost-effective manner, while meeting the needs of our provincial partners" said CEO Mark Zekulin in the company’s press release.

In Quebec, the company will add 223,200 square feet of cultivation space at its majority-owned Les Serres Vert Cannabis Inc greenhouse.

The company now has more than 2.7 million square feet of fully-licensed capacity.

Canopy Growth will welcome visitors into the Tweed Visitor Centre at its Smith Falls Campus starting Saturday, allowing guests over the age of 19 to walk along the catwalk left by Hershey’s factory and peek in at specific licensed rooms.

Shares of the Ontario-based company were down lightly to US$38.11 in Wednesday pre-market trading.

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Wed, 22 Aug 2018 08:27:00 -0400 https://www.proactiveinvestors.com/companies/news/203401/canopy-growth-to-increase-growing-capacity-after-receiving-amended-licenses-from-health-canada-203401.html
<![CDATA[News - Cannabis stocks in Canada recover after a whirlwind week; Canopy Growth up 8.6% on Friday ]]> https://www.proactiveinvestors.com/companies/news/203172/cannabis-stocks-in-canada-recover-after-a-whirlwind-week-canopy-growth-up-86-on-friday-203172.html Canadian cannabis stocks had a roller-coaster week, this week with extreme highs and lows but ended generally on a positive note. 

The biggest news this week was the fact that Constellation Brands (NYSE:STZ) will spend C$5bln to boost its stake in Canopy Growth Corp (CSE:WEED), sending shares up 8.6% at C$44.18 on Friday. The company reported a quarterly C$90mln net loss on Tuesday.

READ: Canopy Growth reports quarterly earnings in-line with analyst expectations; net loss of C$90.9mln

For Canopy, Constellation Brands, the New York-based beverage company, announced it will spend about C$5bn (US$3.8bn) to boost its stake in Canopy Growth, in a bet that legalization will gain traction around the world. Constellation said that it would buy 104.5 million Canopy shares priced at C$48.60 each.

“This is rocket fuel,” said chief executive officer Bruce Linton, of Canopy in an earnings calls on Wednesday. “We’re going to be way more global.”

READ: Kaneh Bosom Biotechnology: experienced management, access to capital and a clear strategy paves the way for success for the cannabis company

Other significant players in the market, including Aurora Cannabis Inc. (TSE:ACB:CA) was up 4.0%, at C$6.50 on Friday. Aphria Inc. (TSE:APH:CA) was up 1.8%, at C$10.58.

Hiku Brands (CSE:HIKU) soared 9.9% at C$2.00.

The Horizons Marijuana Life Sciences Exchange Traded Fund, a group of marijuana stocks that trades on the Toronto Stock Exchange, rose 2.80%, to C$16.55.

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Fri, 17 Aug 2018 17:34:00 -0400 https://www.proactiveinvestors.com/companies/news/203172/cannabis-stocks-in-canada-recover-after-a-whirlwind-week-canopy-growth-up-86-on-friday-203172.html
<![CDATA[News - Cannabis stocks rocket upwards in Canada on the back of funding and acquisition announcements; Canopy Growth up 31% ]]> https://www.proactiveinvestors.com/companies/news/203004/cannabis-stocks-rocket-upwards-in-canada-on-the-back-of-funding-and-acquisition-announcements-canopy-growth-up-31-203004.html Canadian cannabis stocks rocketed upwards on Wednesday as investors reacted to a host of news, notably the fact that Constellation Brands (NYSE:STZ) will spend C$5bln to boost its stake in Canopy Growth Corp (CSE:WEED), sending shares up 31.3% at C$42.20.

Other significant players in the market, including Aurora Cannabis Inc. (TSE:ACB:CA) were up 19.5%, at C$6.38. Aphria Inc. (TSE:APH:CA) was up 20.5%, at C$10.51. Hiku Brands (CSE:HIKU) was up 30.1% at C$1.90. 

In the case of Canopy Growth, Constellation Brands, the New York-based beverage company, announced it will spend about C$5 billion (US$3.8 billion) to boost its stake in Canopy Growth, in a bet that legalization will gain traction around the world. Constellation said that it would buy 104.5 million Canopy shares priced at C$48.60 each, marking a significant premium over Tuesday’s closing price of C$32.15.

“This is rocket fuel,” said chief executive officer Bruce Linton, of Canopy in an earnings calls on Wednesday. “We’re going to be way more global.”

READ: Cannabis stocks plummet in Canada on the back of Ontario rule changes

In the case of Aphria, Perennial Inc., a subsidiary of Data Communications Management Corp., and Aphria have signed a letter of intent to establish a joint venture to develop new, consumer-centric cannabis products and brands for the Canadian adult-use market.

For Aurora, news that its acquisition of Anandia Laboratories Inc. is now complete helped bolster the stock.

The Horizons Marijuana Life Sciences Exchange Traded Fund, a group of marijuana stocks that trades on the Toronto Stock Exchange, rose 9%, to C$15.90.

The market movements point to an emerging trend in the Canadian cannabis space, where investors appear to have increased confidence in the cannabis sector, despite significant ups and downs in recent months. 

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Wed, 15 Aug 2018 18:48:00 -0400 https://www.proactiveinvestors.com/companies/news/203004/cannabis-stocks-rocket-upwards-in-canada-on-the-back-of-funding-and-acquisition-announcements-canopy-growth-up-31-203004.html
<![CDATA[News - Canopy Growth reports quarterly earnings in-line with analyst expectations; net loss of C$90.9mln ]]> https://www.proactiveinvestors.com/companies/news/202899/canopy-growth-reports-quarterly-earnings-in-line-with-analyst-expectations-net-loss-of-c909mln-202899.html Canopy Growth Corp. (NYSE:CGC, TSE:WEED), the world's largest marijuana company and the first to trade on the New York Stock Exchange, reported its quarterly earnings today, posting a net loss of C$90.9mln and a net loss per share of C$0.40.

The company reported its earnings today ahead of a monumental move for Canada in a few months, which will legalize recreational marijuana.

Canopy Growth reported revenue of C$25.9mln, in line with analyst expectations. 

Analysts expected the company to report C$25.8mln, an increase of 62.76% over the prior year's quarter.

"With our unparalleled success in Canada and Europe, Spectrum Cannabis' expanding global operational footprint now covering 11 countries, our active regulatory and global market development efforts, as well as approvals to proceed with the first of many planned clinical trials of cannabis-based medical therapies for both humans and animals, our leadership position in international medical cannabis markets continues to strengthen," said chairman and co-CEO Bruce Linton in a statement. 

"With an estimated 36% of the total supply committed to date to the provinces and territories, we have secured by far the deepest channel into the Canadian recreational cannabis market. Considering our substantial inventory, large cultivation footprint in production and the millions of additional sq. ft. of greenhouses and our new state-of-the-art distribution centre that are ready and waiting for licenses, we remain very confident in our ability to succeed in capturing significant market share."

Earlier on Tuesday, shares of Canopy Growth dipped after news that the government of Ontario announced it would allow recreational sales in privately-run pot retailers starting by April 1, months later than expected. Customers will be able to buy cannabis online as of Oct. 17, the day recreational sales in Canada are legal. 

READ: Cannabis stocks plummet in Canada on the back of Ontario rule changes

The company announced on Tuesday that it has issued C$2,500,000 in common shares of Canopy Growth in connection with the expansion of an existing commercial arrangement.

Last week, the company received a go-ahead from the Veterinary Drug Directorate of Health Canada to research the effectiveness of cannabidiol (CBD) to treat anxiety in certain animals.

Shares of Canopy Growth closed down 8.2% in Toronto on Tuesday at C$32.15.

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Tue, 14 Aug 2018 16:44:00 -0400 https://www.proactiveinvestors.com/companies/news/202899/canopy-growth-reports-quarterly-earnings-in-line-with-analyst-expectations-net-loss-of-c909mln-202899.html
<![CDATA[News - Cannabis stocks plummet in Canada on the back of Ontario rule changes ]]> https://www.proactiveinvestors.com/companies/news/202891/cannabis-stocks-plummet-in-canada-on-the-back-of-ontario-rule-changes-202891.html Canadian cannabis stocks tumbled on Tuesday as investors reacted to the news that Ontario will limit sales of the drug when it becomes legal on Oct. 17.

Ontario had previously planned to open government-run retail stores this October, however, a shift in provincial government has changed the timeline. The new provincial government in Ontario, under Doug Ford, has decided to allow the private sector to operate stores, but not until April.

The government says it plans to sell cannabis online starting in October.

Markets responded to the news, with stocks like Canopy Growth (TSE:WEED) and Aurora Cannabis Inc. (TSE:ACB:CA) tumbling 7.00% and 8.78%, respectively.

Aphria Inc. (TSE:APH:CA) was down 7.88%.

READ: CROP Infrastructure strikes supply deal for hemp products

The delay in the opening of Canada’s largest market for cannabis is a blow for the industry.

However, some believe the additional time is warranted -- and needed.

On Monday, the government (elected in June) said it will begin to consult with businesses, consumer groups, municipalities, law enforcement and others next week and will examine the retail models planned by Alberta, Saskatchewan and Manitoba. 

Recreational cannabis will be sold online in Ontario when legalized Oct. 17 through a government agency, the Ontario Cannabis Store.

Brick and mortar stores will be in place by April 2019. 

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Tue, 14 Aug 2018 15:17:00 -0400 https://www.proactiveinvestors.com/companies/news/202891/cannabis-stocks-plummet-in-canada-on-the-back-of-ontario-rule-changes-202891.html
<![CDATA[News - Daily CryptoCann™ Report: Litecoin price jumps after acquiring stake in German bank; Canopy Growth to acquire Hiku Brands ]]> https://www.proactiveinvestors.com/companies/news/200618/daily-cryptocann-report-litecoin-price-jumps-after-acquiring-stake-in-german-bank-canopy-growth-to-acquire-hiku-brands-200618.html A new study predicts that blockchain technology is poised to explode in the telecoms sector. Global market research firm Research and Markets expects the industry to jump from US$46.6mln in 2018 to US$993.8mln in 2023.

The report credits increased security concerns as one of the driving factors behind the rise of blockchain. However, the study does point to “uncertain regulatory status and the lack of common standards” as a potential obstacle to growth.

READ: Daily CryptoCann™ Report: Walmart files a patent for blockchain delivery system; Michigan approves new conditions for its medicinal marijuana program

Moving from blockchain to crypto, the price of Litecoin shot up amid acquisition news.

The Litecoin Foundation acquired a nearly 10% stake in Germany-based WEG Bank by means of a partnership with Token Pay, a crypto-to-fiat payments provider, according to a Coin Desk report.

Litecoin founder Charlie Lee described the partnership as a “huge win-win” for all involved.

The price of Litecoin, the world’s sixth-largest cryptocurrency based on market value, was up more than 2.5% to US$77.96.

The Cann Report

Canopy Growth Corp (NYSE:CGC, TSX:WEED) announced that it plans to acquire craft cannabis company Hiku Brands Company Ltd (CSE:HIKU). Hiku was offered C$1.91 per share, adding up to a deal of C$269.2mln, or US$205.3mln.

The company said that it has terminated its deal with WeedMd Inc (CSE:WMD), calling Canopy’s offer a “superior proposal" in a press release.

Shares of Ontario-based Canopy Growth were up more than 2% to US$29.71.

READ: Crop Infrastructure Corp's Italian joint venture partner plants up 25 acres

In other news from the Great White North, Crop Infrastructure Corp (CSE:CROP, OTCMKTS:CRXPF) joint venture partner has begun production in Europe. XHemplar Italia has planted 25 acres of high-cannabidiol Cannabis Light in Italy.

"The company is extremely encouraged by the fast pace with which the team at XHemplar has commenced production in Italy," said Crop Infrastructure CEO Michael Yorke.

Crop intends to use the production to infuse its new therapeutic and cosmetics lines.

Meanwhile, back in the States, Oklahoma’s State Board of Health has banned the sale of smokable medical marijuana, according to a High Times report.

The Bible Belt state legalized medical marijuana at the end of June.

The Oklahoma State Medical Association called for the ban as well as limiting the number of dispensary licenses available and suggested requiring pharmacists to be on staff at dispensaries.

The ban only applies to dispensary sales. Cannabis grown in a patient’s residence can still be smoked.

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Wed, 11 Jul 2018 14:52:00 -0400 https://www.proactiveinvestors.com/companies/news/200618/daily-cryptocann-report-litecoin-price-jumps-after-acquiring-stake-in-german-bank-canopy-growth-to-acquire-hiku-brands-200618.html
<![CDATA[Media files - Daily CryptoCann™ Report: Litecoin price jumps after acquiring stake in German bank; Canopy Growth to acquire Hiku Brands ]]> https://www.proactiveinvestors.com/companies/stocktube/9835/daily-cryptocann-report-litecoin-price-jumps-after-acquiring-stake-in-german-bank-canopy-growth-to-acquire-hiku-brands-9835.html Wed, 11 Jul 2018 09:30:00 -0400 https://www.proactiveinvestors.com/companies/stocktube/9835/daily-cryptocann-report-litecoin-price-jumps-after-acquiring-stake-in-german-bank-canopy-growth-to-acquire-hiku-brands-9835.html <![CDATA[News - Canopy Growth swings to net loss in fiscal quarter as it spends to prepare for Canada's roll-out of legal cannabis ]]> https://www.proactiveinvestors.com/companies/news/199684/canopy-growth-swings-to-net-loss-in-fiscal-quarter-as-it-spends-to-prepare-for-canada-s-roll-out-of-legal-cannabis-199684.html Canopy Growth Corp (TSX:WEED) (NYSE:CGC), swung to a staggering net loss for its fiscal fourth quarter but saw a pickup in revenue helped by its robust business in Canada and Germany.

An increase in spending in the quarter contributed to the net loss as the Canadian medical cannabis company prepares for the roll-out of legalized cannabis across Canada.

“Canopy Growth is uniquely positioned to go beyond our current commitments to provincial agencies and cannabis retailers in order to successfully open the regulated recreational cannabis market in Canada as a producer of choice nationwide,” said Canopy’s chairman and CEO Bruce Linton.

The company’s net loss for its fourth quarter ended March 31 came to C$61.5mln, or C$0.31 per basic and diluted share, which was more than five times its net loss of C$12mln, or C$0.08 per share in the same period a year ago.

READ: Canopy Growth, Canopy Rivers to collaborate with LiveWell Foods on giant cannabis projects

But the company spent more in the quarter ahead of Canada's legalization of cannabis, with its net cash used for investing activities climbing to C$93.2mln in the quarter from C$1.16m in the same period last year.

For the full fiscal year, its net loss swung to C$70.4mln, or C$0.40 per share, up from C$7.5mln, or C$0.06 per share in the previous fiscal year.

Its fiscal fourth-quarter revenue came to C$22.8mln, which was up 55% from the same period a year ago. Revenue for the fiscal year amounted to C$77.9mln, which was up 95% from the previous year’s revenue of C$39.9mln.

Oil sales, including soft gel capsules, comprised 23% of fourth-quarter product revenue. Sales in Canada were strong as the company secured online cannabis retail licenses in Manitoba, Newfoundland and Labrador and Saskatchewan. It also saw booming interest from Germany, which accounted for C$2.3mln in quarterly sales.

“With the recent launch of our Spectrum Softgels, strong sales in Canada and Germany and the expansion of our global footprint into Africa and further into Europe and Australia, we continue to drive our global leadership position in medical cannabis forward,” said Linton.

Canopy’s cash and cash equivalents jumped in the quarter to C$322.6mln, up from C$220.8mln in the year-ago period.

Separately, Canopy announced that its current president Mark Zekulin, has been tapped as its co-chief executive as well, and will report to chairman and CEO Bruce Linton.

In pre-market trade, Canopy Growth shares inched 2.3% lower to US$30.25.

Contact Ellen Kelleher: ellen@proactiveinvestors.com

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Wed, 27 Jun 2018 08:19:00 -0400 https://www.proactiveinvestors.com/companies/news/199684/canopy-growth-swings-to-net-loss-in-fiscal-quarter-as-it-spends-to-prepare-for-canada-s-roll-out-of-legal-cannabis-199684.html
<![CDATA[News - Canopy Growth, Canopy Rivers to collaborate with LiveWell Foods on giant cannabis projects ]]> https://www.proactiveinvestors.com/companies/news/194350/canopy-growth-canopy-rivers-to-collaborate-with-livewell-foods-on-giant-cannabis-projects-194350.html The Canadian weed industry was back in the spotlight Thursday as Canopy Growth Corp (TSX:WEED), Canopy Rivers and LiveWell Foods Canada Inc are to collaborate to commercialise Livewell's two large scale pot projects in Ontario and Quebec.

LiveWell is a vertically integrated cannabis company with a full seed-to-sale solution, including two large greenhouse projects in development totalling over 1.5mln sq ft.

READ: Canopy Growth and Delta 9 given green light to open cannabis retail stores in Manitoba

The private firm has established partnerships with leading names in the sector and also distributes retail and bulk hemp products under the O-Hemp brand and plans to distribute cannabis edibles and infused products.

Canopy's team will provide LiveWell with high-quality genetics for initial cultivation, access to trained personnel for guidance/support, and other strategic and financial support .

"This new partnership represents further validation that Canopy is the platform of choice in the cannabis sector," said Bruce Linton, Canopy Growth chief executive and chairman.

"Canopy has an unmatched ability to collaborate with partners given our breadth of operational knowledge, technology, investment capital, and cultivation expertise."

LiveWell has received an initial purchase agreement from Canopy, for cannabis production at the Ottawa project.

LiveWell also has the option to draw on up to $20,000,000 of debt financing from Canopy Rivers (subject to certain milestones) to support the firm's continued growth.

Canopy Growth shares added 0.22% Thursday to stand at C$27.70.

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Thu, 05 Apr 2018 09:26:00 -0400 https://www.proactiveinvestors.com/companies/news/194350/canopy-growth-canopy-rivers-to-collaborate-with-livewell-foods-on-giant-cannabis-projects-194350.html
<![CDATA[News - Canopy Growth and Delta 9 given green light to open cannabis retail stores in Manitoba ]]> https://www.proactiveinvestors.com/companies/news/191793/canopy-growth-and-delta-9-given-green-light-to-open-cannabis-retail-stores-in-manitoba-191793.html Delta 9 and Canopy Growth Corporation (TSX:CGC) have been selected by the government of Manitoba to build and operate recreational cannabis retail stores in the province.

The two partners were one of only four successful candidates chosen to operate a number of stores in the region.

Delta 9 boss John Arbuthnot said: “It is hard to overstate how important this award is for our company, our shareholders, and for the future of the legal cannabis industry in Manitoba.”

At the moment, the licence is only conditional, but the formal agreement, which includes meeting a series of conditions, is expected to be a formality.

Once official, this will mark Canopy Growth’s second provincial retail agreement after the world’s largest cannabis company previously announcing plans to apply to operate four retail stores in Newfoundland & Labrador.

“We look forward to establishing friendly and modern retail spaces that prioritise consumer education and superior customer service, resulting in a safe and positive experience for adult consumers,” added Canopy’s President Mark Zekulin.

The first of Delta and Canopy’s stores has already been constructed in Winnipeg and has been operating for several months as a resource centre. That will be the first of many stores, the two parties said.

Delta 9 has estimated that the provincial cannabis market is worth up to US$500mln annually.

On a side note, Delta said its products will be distributed through Canopy Growth’s outlets in other provinces.

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Fri, 16 Feb 2018 13:25:00 -0500 https://www.proactiveinvestors.com/companies/news/191793/canopy-growth-and-delta-9-given-green-light-to-open-cannabis-retail-stores-in-manitoba-191793.html
<![CDATA[News - Pot stocks take a hit as Trump gets tough on legal cannabis industry ]]> https://www.proactiveinvestors.com/companies/news/189595/pot-stocks-take-a-hit-as-trump-gets-tough-on-legal-cannabis-industry-189595.html Cannabis stocks have seen share prices hit as President Trump's Republican government got tough on the North American pot industry.

Yesterday, it emerged that US Attorney General Jeff Sessions had said he was rescinding policy brought in by former President Obama, which offered protection to states that have legalized marijuana as long as they follow guidelines.

Put simply, it allows US prosecutors to target legal marijuana operations

READ - High times for cannabis stocks as California becomes sixth state to sell drug for recreational use

It came just days after Californians were celebrating the introduction of the sale of recreational pot, which was made legal in the most populous state in the USA. It became the sixth US state to do so.

Experts reckon it is now the largest market for the herbal drug in the world.

"There should be no doubt that President Trump has officially declared war on California," quoted UK newspaper The Guardian on Thursday, quoting the state's senate leader Kevin de León.

New research out this week suggests the legal cannabis industry in the USA is expected to generate nearly US$40bn in economic impact by 2021.

That would be around a 150% increase in economic output from the US$16bn of cannabis generated in 2017.

But the latest Trump move could put those sort of numbers in doubt, and was felt strongly among cannabis-focused companies.

California-based Terra Tech Corp (OTCQ:TRTC), the largest US pot company with a US$407mln market cap, was down over 31% to US$0.28 on Thursday.

Denver-based GrowGeneration Corp (OTC:GRWG) shed over 21% to US$3.35 and fell 0.60% after hours.

Canada set to fully legalise marijuana 

Cannabis Sativa Inc (OTC:CBDS), based in Nevada, where recreational cannabis got the go-ahead last July, shed around 24% to US$7.40.

Meanwhile, many of the listed cannabis companies in North America are based in Canada, which is gearing up to fully legalize marijuana later this year.

Supreme Cannabis Company Inc (CVE:FIRE), shed 7.46% to C$3.04, while Ontario-based rival Canopy Growth Corp (TSE:WEED) shed almost 10% to C$32.32.

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Fri, 05 Jan 2018 08:26:00 -0500 https://www.proactiveinvestors.com/companies/news/189595/pot-stocks-take-a-hit-as-trump-gets-tough-on-legal-cannabis-industry-189595.html
<![CDATA[News - Canopy Health teams up with Quebec consultancy firm ]]> https://www.proactiveinvestors.com/companies/news/173000/canopy-health-teams-up-with-quebec-consultancy-firm-173000.html Canopy Health Innovations, partly-owned by Canopy Growth Corporation (TSE:WEED), has brought on board a consultancy firm to help it develop and commercialise cannabis-based medicines as quickly as possible.

CHI and Quebec-based EPIC Consulting Inc. have agreed a three-year partnership during which they will work together to develop drug formulations and delivery systems targeting unmet medical needs.

EPIC is also the firm of Dr Mark Ware who has been conducting medical cannabis research for the best part of two decades and is well-respected in the field.

“We have a unique opportunity here in Canada to study cannabis and develop products that will change the world,” said Canopy Health President Marc Wayne.

“Bringing Dr Ware in at this exciting moment to consult on our clinical research strategy is an important step towards our vision of bringing validated cannabis medicines to market as quickly as possible.”

Canopy Growth Corp has first refusal to commercialise any resulting intellectual property developed by CHI.

Shares in Canopy Growth were up 1%, or C$0.10, to C$12.16.

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Fri, 10 Feb 2017 10:11:00 -0500 https://www.proactiveinvestors.com/companies/news/173000/canopy-health-teams-up-with-quebec-consultancy-firm-173000.html
<![CDATA[News - Canopy launches Brazil joint venture ]]> https://www.proactiveinvestors.com/companies/news/127602/canopy-launches-brazil-joint-venture-127602.html Cannabis firm Canopy Growth Corporation (CVE:CGC) has agreed a deal with São Paulo-based Entourage Phytolab to develop medicinal products in Brazil.

The deal will see the two firms work together to develop innovative cannabis-based medical products for the Brazilian and international markets.

“Brazil represents a large emerging market, and has a favourable regulatory framework for medical cannabis products as well as competitive clinical trial and production costs,” said Canopy chairman and chief executive Bruce Linton.

Entourage already has permission from ANVISA – the Brazlian health surveillance agency – for the research and development of cannabis-based therapeutics.

The JV will take on the name Bedrocan Brazil as Canopy already has a North American subsidiary called Bedrocan Canada.

The agreement will allow the JV to hold the exclusive local rights to use the “world-leading” Bedrocan brand.

Canopy says that Bedrocan Brazil will import cannabis products from Canada or the Netherlands initially, with a view to establishing domestic cultivation facilities in Brazil in the future.

Shares in Canopy were unchanged at C$2.67.

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Tue, 28 Jun 2016 08:42:00 -0400 https://www.proactiveinvestors.com/companies/news/127602/canopy-launches-brazil-joint-venture-127602.html
<![CDATA[News - Canopy Growth Corporation gets green light for Ontario grow operation ]]> https://www.proactiveinvestors.com/companies/news/124277/canopy-growth-corporation-gets-green-light-for-ontario-grow-operation-124277.html Canopy Growth Corporation (CVE:CGC) told investors that is wholly owned subsidiary Tweed Farms Inc has been given a seal of approval from Health Canada for its marijuana at its facilities in Niagara-on-the-Lake, Ontario.

The new Health Canada licence allows Tweed Farms to produce 1,200 kilograms of dried marijuana.

The licence marks the completion of a major infrastructure expansion which, according to Tweed Farms, has seen it develop a vertically integrated cannabis campus.

At a 375,000 square feet facility it is now capable of growing, trimming, curing and storing Tweed Farm’s product. Canopy Growth said Tweed Farms would now seek a final sales licence, as soon as the first cannabis crop has been harvested and tested for sale.

Bruce Linton, chief executive of Canopy Growth, said: "This infrastructure completion and Health Canada approval milestone is a testament to the team at Tweed Farms who continue to execute our capacity-building as planned."

He added: “We acquired the greenhouse twenty two months ago to position ourselves as a large scale, low-cost producer capable of supplying a sizeable percentage of the market.

"We now have three distinct facilities licensed to produce a significant amount of finished goods, offering a growing number of patients a reliable, diverse and secure supply of cannabis and related oils products."

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Thu, 31 Mar 2016 08:54:00 -0400 https://www.proactiveinvestors.com/companies/news/124277/canopy-growth-corporation-gets-green-light-for-ontario-grow-operation-124277.html