CASE STUDY 2: CANOPY GROWTH CORPORATION
Canopy Growth Corporation (TSX:WEED; OTC:TWMJF; FRA:11L1) is the world’s largest legal cannabis producer and was also my first case study and I have revisited this company at key junctures such as its acquisition of Mettrum Inc with the ongoing real arbitrage opportunity that prevailed for an extended time at that time. Now is a good time to revisit WEED. On the customized Investment Analysis form, there are three sheets (WEED, TWMJF, and an expanded form). Feel free to use those forms as part of this case study but remember it is for education and illustrative purposes only and not an investment recommendation.
Highlights
- Listed on the TSX. Canada’s largest National Stock Exchange.
- Key holding of HHMJ – world’s first ETF.
- On the CannaInvestor Magazine top stock pick lists since the first issue.
- Domestic Expansion Update suggests will be ready to serve the legal adult recreational market from multiple production sources across Canada.
- Global Operational Update demonstrates a well position company and business plan.
- Introduced “CraftGrow” – bringing new strains made by third parties to Weed’s more than 50,000 medical patients. There may be other valued added strategic reasons for this offering.
- Canopy Rivers – the cannabis industry’s first strategic and streaming support platform.
- Product and market differentiation: dry, oil, seeds, capsules, hemp, etc. Inked a deal with Isodiol International Inc with respect to edibles.
- 2018 Q1 Financial Results highlights their expansion
- Increasing revenues as this chart illustrates
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