The first North American cannabis company to be publicly traded continues to impress
2018 was full of ups and downs for virtually all stocks but, particularly, for those from the marijuana industry. Especially during the second half of the year, the majority of the publicly-traded companies saw their prices extremely volatile, leading to more insecurity on the part of investors. Despite the roller coaster ride, Canopy Growth has continued to stay strong and it doesn’t appear that this is going to change any time soon.
Canopy Growth was the first cannabis company in all of North America to be traded publicly. It is headquartered in Ontario, Canada, making it within arm’s length of U.S. investors. Canopy is traded in Canada on the Toronto Stock Exchange under the ticker symbol WEED and on the New York Stock Exchange under the symbol CGC.
As with everyone else, Canopy suffered during the latest stock market crash (which many analysts still don’t want to acknowledge was a crash). However, it has a stronger foothold in the industry that allows it to weather the storm better. It sells thousands of kilograms of cannabis each quarter, giving the company tens of millions of dollars in revenue as it continues to distribute its products.
Canopy wrapped up its second fiscal quarter at the end of September last year. When it did, it had received for the quarter $23.3 million in revenue, which was a 33% increase year-on-year. It sold 2,197 kilograms of marijuana – 9% more than during the same quarter in 2017. The price also went up, increasing from the 2017 price of $7.99 to $9.87 per gram. This also helped the company increase its position.
There are now 10 cannabis production sites under the Canopy umbrella. They offer a combined 4.3 million square feet of production capacity and the company doesn’t show any signs of slowing down. It is steadily expanding in North America and establishing global deals that will see it reach virtually all parts of the globe.
Of course, Canopy has a real ace up its sleeve, as well. The company has partnered with Constellation Brands through an investment that gave the latter a major stake of the operations. Constellation put in $4 billion that will give Canopy “significant funding needed to build scale in the more than 30 countries currently pursuing federally permissible medical cannabis programs, while establishing the foundation needed to supply new recreational adult-use markets as cannabis becomes legal in markets around the world.”
When the world looks back on the marijuana industry in ten years, it is going to view Canopy as a pioneer and founder of the industry. Anyone looking for a long-term investment in the marijuana industry should definitely consider making the company part of its portfolio.