Shares of Canopy Growth (NYSE :), (TSX 🙂 closed slightly above the level they reached last week when the world's largest cannabis company released its latest quarterly results yesterday.
The moves from here will be closely watched as Canopy Growth is still considered an important stock for the cannabis industry. The stock's closing price on November 16 of CA $ 32,435 (US $ 24.77) is the highest level reached in 2020. If they go higher, will it be the trajectory of a slow but steady trend?
Graph of Daily Canopy Growth
Last week, Canopy reported results, posting C $ 135.3 (US $ 103.43) million in revenue for the three-month period ended September 30. That represented an increase of 77% compared to the same quarter in the previous year. The company also reported an adjusted EBITDA loss of C $ 85.7 (US $ 65.51) million. It recorded a loss of C $ 94.7 (US $ 72.39) million on financial assets and C $ 46.3 (US $ 35.39) million in depreciation and amortization.
One of the main highlights was CA $ 8 (US $ 6.12) million in revenue from cannabis 2.0 products. In the case of Canopy, this mainly comes from drinks containing cannabis. This segment was up approximately CA $ 2 (US $ 1.53) million from the previous quarter. This is also the area that observers are looking for significant growth.
The company also pointed out the launch of Martha Stewart branded CBD gummies, which were released in September.
What investors should keep an eye on is how the major cannabis companies are positioned to take advantage of federal legalization in the US. With about 70% of states legalizing marijuana and Democrats preparing to take over the White House, the prospect of a federal green light on this long-awaited issue comes into sharper focus.
And again, this would give Canopy a strategic advantage. The partnership with multi-state operator Acreage Holdings (OTC :), (CSE 🙂 will be fully activated once federal legalization is achieved. Acreage has already begun licensing many of Canopy & # 39; s retail products and brands for the US market. the exchange in the US on Monday, November 16
The move is part of a strategy to improve cost-effectiveness, the Canada-based company said.
"By moving to Nasdaq, we join some of the world's leading companies who share our passion and focus for innovation," said David Klein, CEO of Canopy Growth.
"Making the transition to NASDAQ will also provide us with greater cost-effectiveness and access to a range of tools and services that will help us more efficiently connect with our current and future investors."
