Canopy Growth Corp Making Big Moves

Canopy Growth Corp is a name that should be in every cannabis investor's portfolio. We at Insider Financial have primarily been covering US cannabis names, but we're now turning our attention to The Great White North. We kicked off our coverage this week with another major player in Canada, Aurora Cannabis Inc. Now we're focusing on Canopy.While most US investors are focused solely on the US, we believe this to be a big mistake. By 2024, Health Canada projects that the medical cannabis market in Canada will reach $1.3 billion and have ~450,000 patients out of a population of 35 million.Prime Minister Justin Trudeau was elected after including legalization of recreational marijuana. On April 20th, 2016, the Canadian Health Minister Jane Philpott announced that Canada would introduce legislation to decriminalize and regulate cannabis in spring of 2017. The recreational market in Canada is estimated to be worth $7 to $10 billion.For those not familiar with Canopy, the company aims to be "a world-leading diversified cannabis company, offering diverse brands and curated cannabis strain varieties in dried and oil extract forms. Through its wholly-owned subsidiaries, Tweed, Tweed Farms, and Bedrocan Canada, Canopy Growth operates three state-of-the-art production facilities with over half a million square feet of indoor and greenhouse production capacity. Canopy Growth has established partnerships with leading sector names in Canada and abroad." Canopy trades in Canada under the symbol CGC, in the US under TWMJF, and 11L1 in Germany.Canopy's subsidiary Tweed is perhaps the most recognized marijuana production brand in the world. It has built a large and loyal following by focusing on quality products and meaningful customer relationships. Tweed Smiths Falls is housed in the former Hershey Chocolate factory at 1 Hershey Drive, and comprises 40 acres of land with over 460,000 sq. ft. of available space. Tweed occupies 168,000 sq. ft. of licensed production space, plus office space. The facility houses an R&D facility, oil extraction infrastructure, and in-house lab. There are precise climate controlled spaces for each stage of cannabis production, from clone to cured bud. Tweed is partnered with some of the leading names in the sector including legendary breeders DNA Genetics and iconic cannabis connoisseur Snoop Dogg.The latest news from Tweed and Snoop Dogg really got the stock moving higher at the beginning of this month because it signaled to the market that Canopy is ready for the eventual legalization of marijuana in Canada. Leafs by Snoop will soon be available in Canada exclusively to customers registered with Tweed. The Tweed Shop will soon be home to the first three Canadian Leafs by Snoop varieties – Sunset, Ocean View and Palm Tree CBD – a nod to the West Coast rapper's California heritage. Starting with three whole-flower dried cannabis strains and expanding over time, Leafs by Snoop will be a full spectrum offering of diverse strains including a high CBD option and mid to high-range THC options. For a company looking to be the dominant player in the recreational market, there isn't better name recognition than Snoop Dogg in the marijuana space.In the first quarter of fiscal 2017 ended June 30, 2016, the Company sold approximately 984 kilograms and kilogram equivalents at an average price of $7.09 per gram. Revenue for the fourth quarter was $7.0 million compared to revenue of $1.7 million in the three months ended June 30, 2015 and $5.0 million for the fourth quarter of fiscal year 2016. The gross margin was $3.4 million, or 49% of revenue, for the three month period ended June 30, 2016.As of June 30, 2016 , the Corporation's cash, comprised of cash and cash equivalents totaled $19.5 million , representing an increase of $4.1 million from March 31, 2016. The increase is attributable to net proceeds from the April 2016 "bought deal" common share offering in the first quarter of the fiscal year 2017 and the exercise of options and warrants together totaling $11.5 million partially offset by cash used to fund operations, investments in facility enhancements and international development together totaling $7.4 million.On July 25, 2016 , the Corporation announced that wholly-owned subsidiary Tweed had received the necessary approvals in Canada and Germany to begin exporting medical cannabis for sale to German patients. Working with MedCann GmbH Pharma and Nutraceuticals, a privately held pharmaceutical importer and manufacturer, the transfer marks an important milestone for the Company and the first known incidence of dried cannabis being exported from a Canadian licensed producer to a major G7 country. CEO Bruce Linton said:

"Our business took many important steps forward, in both Canada and abroad, during the first quarter. Continued investment helped our business deliver its eighth consecutive quarter of double digit percentage growth in revenue, product sold and registered patients. During the quarter we brought the full Tweed Farms greenhouse, all 350,000 square feet, into production. With close to 600,000 sq. ft. in production across the corporation, in both low cost greenhouse and indoor growing facilities, the capability and flexibility that we have to produce large quantities of high quality dried cannabis and extracts, to meet potential future market demand, is unmatched in the sector."

Canopy Growth Corp is one of the best plays in not only Canada, but also in the entire cannabis space. With the favorable regulatory environment in Canada and its partnership with Snoop Dogg, Canopy seeks to be one of the Blue Chips of the cannabis industry. Already Canopy is the largest producer in Canada and with global ambitions, Canopy is one of the must-own stocks in the sector. We will be updating our subscribers with the latest on Canopy and other cannabis names. For complete coverage, sign up below!Disclosure: We have no position in Canopy Growth Corp and have not been compensated for this article.