CANOPY GROWTH CORP COM NPV (OTCMKTS:TWMJF) continues its upward move. In our last review of TWMJF on June 29, 2017, the stock was trading at $6.03. It has since traded as high as $7.63 on July 27, 17 and is currently trading at $6.95.
For those readers that have not been acquainted with Canopy Growth Corp, here is a little background on the Company. Canopy Growth is a world-leading diversified cannabis company, offering distinct brands and curated cannabis varieties in dried, oil and capsule forms. Through its wholly‑owned subsidiaries, Canopy Growth operates numerous state-of-the-art production facilities with over half a million square feet of GMP-certified indoor and greenhouse production capacity, all to an unparalleled level of quality assurance procedures and testing. Canopy Growth has established partnerships with leading sector names in Canada and abroad, with interests and operations spanning four continents. The Company is proudly dedicated to educating healthcare practitioners, providing consistent access to high quality cannabis products, conducting robust clinical research, and furthering the public’s understanding of cannabis.
Canopy Growth Corp added yet another partner with additional cannabis products to add to TweedMainStreet.com. On August 8, 2017, the Company signed an agreement with Umbral Energy Corp. (CSE:UMB) to supply its cannabis products via TweedMainStreet.com once the appropriate cultivation and sales licenses have been Granted. Mark Zekulin, President of Canopy Growth Corporation commented:
“The CraftGrow program continues to attract excellent participation and excellent partners entering the medical cannabis space. We are the only producer in Canada to offer a variety of producers’ cannabis products, which is a winning proposition for everyone, especially our customers.”
On July 27, 2017, announced that it completed its previously announced private placement with one investor of common shares. Pursuant to the Offering, the Company issued 3,105,590 Shares at a net price of $8.05 per Share, for aggregate gross and net proceeds of $24,999,999.50. The Company intends to use the proceeds of the Offering for capacity growth initiatives.
In other news, Canopy Growth Corp’s wholly-owned subsidiary Bedrocan Canada Inc. commenced arbitration proceedings against Bedrocan International BV (“Bedrocan International” or the “Licensor”) seeking performance of Bedrocan International’s contractual obligations under the licensing and distribution agreement between the parties (the “LDA”). Bedrocan Canada asserts the Licensor has withdrawn and/or withheld services, designs and support contrary to the Licensor’s contractual obligations. Because of this, and due to the fact that Bedrocan International procedures cannot be altered independently of the Licensor, Bedrocan Canada is now seeking redress through the process set out in the LDA.
The acquisition was made in order to diversify the growing platform and brand identities held by the Company. Since this time, Canopy Growth has added a substantial number of brands and growing capacity to its platform. Through this process of expansion, Bedrocan Canada operations have diminished as a percentage of total capacity and brand equity within the Canopy Growth family of companies. In spite of the Licensor’s inaction, Canopy Growth has consistently met its contractual obligations as a licensee.
On the financial front, quarterly financial reports for the period ending June 30, 2017 report revenues of C$15.9 million, a 127% increase over the three month period ended June 30, 2016 when revenue totaled $7.0 million, and an 8% increase over fourth quarter of fiscal 2017 revenues of C$14.7 million. The Company’s cash and cash equivalents totaled C$115.5 million, representing an increase of C$13.6 million from the prior quarter. The Company however, continues to operate at a Net Loss C$4.4 million. Current market capitalization stands at $730.70 million, on 104.99 million shares outstanding as of August 18, 2017.
Canopy Growth Corp continues to show good revenue growth, and enough cash to continue its expansion strategy. At present, TWMJF stock is experiencing a slight dip in price. The savvy investor may consider this a good entry point. We will be updating our subscribers as soon as we know more. For the latest updates on TWMJF, sign up below!
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Disclosure: We have no position in TWMJF and have not been compensated for this article.