One of the first movers in the Canadian cannabis opportunity is trying to solidify their expansion into the United States of America.
What’s happening:
- Canopy Growth (NASDAQ: CGC) has officially acquired popular cannabis brand Wana and its multiple subsidiaries
Why it matters:
- Wana has built one of the most successful cannabis brands in the United States of America, with a prominent line of edibles, CBD infused products and beverages
- American cannabis retailers have been seeing record breaking sales lately, with states such as Michigan, Missouri and Maryland experiencing all time highs in both medical and recreational cannabis sales
Going deeper:
- Prior to the new acquisition of Wana, Canopy Growth had purchased the majority equity stake in California based cannabis company Jetty who produces highly popular vape products and cannabis extracts
- Publicly listed cannabis companies operating in North America have been starting to see some momentum lately, with High Tide (NASDAQ: HITI) being on pace for more than half a billion dollars in sales through their retail network in Canada and Green Thumb Industries (CSE: GTII) announcing a new stock buyback after generating more than a billion dollars in annual gross sales
The fine print:
- Canopy Growth’s share price is still down more than 90% from all time highs, largely due to ongoing challenges in living up to the exceptionally lofty expectations for both revenue and profitability that were once projected to be possible
