Shares of Canopy Growth (NYSE :), (TSX 🙂 gained Monday after it received a vote of confidence from its largest investor late last week.
Canopy shares rose just over 3% last Friday, following an announcement that US beer giant Constellation Brands (NYSE 🙂 increased its stake in the Canadian cannabis grower to just over 38.5%, up from 33 , 5%.
The move came in the form of Constellation exercising its warrants, dating back to November 2017. The alcoholic drinks firm still has the option to expand its property in Canopy if it decides to convert its remaining warrants.
"Canopy is best positioned to win in the emerging cannabis world and we have confidence in the strategic direction of the company under David Klein and his team," said Bill Newlands, president and CEO of Constellation Brands in a statement. Newlands added:
"We continue to believe that the long-term opportunities in this evolving market are significant."
Canopy shares closed at US $ 15.74 (C $ 22.20) yesterday, an increase of 3.15%. The stock has continued its upward trajectory since mid-March, reaching its 2020 low of US $ 9.38 (C $ 14.14).
Fire & Flower Shares On Roller Coaster Ride
Canadian-based cannabis trader Fire & Flower Holdings (OTC :), (TSX 🙂 held with both hands last week stuck when inventory went wild, fueled by the conclusion of a private placement agreement for a higher amount than previously announced, after which it reported its fourth quarter results, including losses, impairment and significant restructuring charges.
By Friday's end, the stock price was US $ 0.40, down slightly from US $ 0.46 (C $ 0.56) earlier in the week. Yesterday, the stock rebounded, gaining 6.25% in New York and closing at $ 0.425. It reached 3.57% in Toronto and ended at C $ 0.58 on Monday.
The share price of Fire & Flower bounced around last year. In September 2019, it reached $ 1.21 (C $ 1.60). In January this year, it was as low as $ 0.91 ($ 1.16), before hitting $ 0.2124 ($ 0.32) on March 18. Last year, the company's stock lost about 60% of its value.
The Edmonton-based company is traded on the US OTC market and the Toronto Stock Exchange and specializes in dried flowers, oils, vapes, concentrates and edibles, which it sells online and through a network of physical outlets across Canada .
On April 28, the company announced that it had completed a private placement of C $ 28 million (US $ 20 million), approximately C $ 3 million (US $ 2.1 million) more than previously announced. Canada-based grocery chain Alimentation Couch-Tard (OTC 🙂 (TSX 🙂 – with locations in Canada, the United States, Mexico, Japan, China and Indonesia – contributed approximately CA $ 2.5 million ($ 1.78 million ). The infusion of capital will be partly used to pay off debts. The investment adds to Couche-Tard's initial $ 25.9 million stake in the company, giving the supermarket operator a controlling stake in Fire & Flower.
On April 30, Fire & Flower released its fourth quarter results. It showed revenues for the three-month period ended February 1 from C $ 16.8 million, an increase of 6.1% compared to the same period in the previous year. However, what caught investors' attention was the net loss of C $ 22.3 million (US $ 15.8 million), including an impairment charge of C $ 4.6 million ($ 3.26 million) and a restructuring charge of C $ 6.5 million ($ 4.62 million). The company also announced it would lower its forecast for stores by seven to 78, from 85.
Global Legal Marijuana Market grew 46%
last year. cannabis market grew by 46% in 2019, the highest annual rate of increase ever recorded, according to the latest report from two industrial marketing research groups. Legal marijuana sales totaled $ 14.8 billion worldwide last year. The increase represents a significant acceleration in sales compared to the 16% jump recorded in 2018.
Markets in Canada, California and Massachusetts experienced the strongest increases in marijuana sales last year, driving global sales upwards, followed by a significant expansion of the medical markets in Florida and Oklahoma, according to figures released by BDS Analytics,
the leading provider of market research in the cannabis industry and Arcview Market Research, recognized as the leading standard in market and analysis data for the cannabis sector.
The report points to continued global growth over the next five years, with BDS Analytics announcing its initial forecast for 2025 global cannabis sales for $ 47 billion, representing a compound annual growth rate of 21% from 2019. US legal cannabis sales are predicted to increase. to represent 72% of total global sales by 2025, up from 84% in 2019. BDS Analytics expects legal cannabis sales in the US to reach $ 34 billion by 2025.
"The long-term outlook for sales growth for the global legal cannabis markets remains exceptional with sustained average sales growth of 21% estimated in 2025," said Roy Bingham, co-founder and CEO of BDS Analytics.
"The cannabis industry may soon reach a turning point when US states facing imminent global recession view cannabis legalization as a new and potentially lucrative source of tax revenue."
United States. sales reached $ 12.4 billion in 2019, up 37% year-on-year compared to 2018 sales of $ 9.1 billion.
The report also noted that California and Massachusetts anchored 2019 legal cannabis sales in the US, good for $ 12.4 billion in sales. In addition, Canada's most populous counties saw significant sales improvements in 2019 when new authorized retailers were opened and supply chain issues were resolved.
Outside of Canada and the United States, international legal cannabis spending increased by 91% in 2019 and reached $ 568 million. The biggest international gains were made in Germany, Australia and Mexico.
