Canopy Growth Archives - Green Market Report

Debra BorchardtDebra BorchardtJuly 3, 2019
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4min2750

Canopy Growth Corporation  (TSX: WEED) (NYSE: CGC) Co-CEO Bruce Linton said he was stepping down leaving Mark Zekulin as the sole CEO while the company begins a search for a new top executive. The company said it would consider both internal and external options. Rade Kovacevic, who currently heads up all Canadian operations and recreational strategy will assume the role of President. These changes are effective immediately.

“Creating Canopy Growth began with an abandoned chocolate factory and a vision,” said Linton. “The Board decided today, and I agreed, my turn is over. Mark has been my partner since this Company began and has played an integral role in Canopy’s success. While change is never easy, I have full confidence in the team at Canopy – from Mark and Rade’s leadership to the full suite of leadership – as we progress through this transition and into the future.”

The move comes as a surprise as Linton has been the face of Canopy for years. That Linton stated that the board decided suggests it wasn’t his decision. His biography was also immediately removed from the company’s homepage.

“We thank Bruce and Mark for establishing the foundation for a company that is very well-positioned to lead in the emerging global cannabis market,” said Canopy Growth board director, David Klein. “We are also excited to embark upon our next phase of growth as global leader in the cannabis industry.”

Canopy Growth said in its statement that it has experienced rapid growth since being founded in 2013, establishing leading positions in Canada’s medical and recreational cannabis markets and building an emerging presence in a number of additional markets around the world. The company recently received a C$5 billion investment from Constellation Brands (STZ), a leading beverage alcohol company, which provides a significant benefit as Canopy continues to establish a first-mover advantage in the quickly evolving global cannabis market.

“While Canopy will never be the same without Bruce, the team and I look forward to continuing to do what we have done for the past 6 years: investing in world-class people, infrastructure and brands, and always seeking to lead through credibility and vision,” said Zekulin. “I personally remain committed to a successful transition over the coming year as we begin a process to identify new leadership that will drive our collective vision forward. I know the company will continue to thrive as the Canopy story continues on for years to come.”

The Board has also appointed John Bell as its Board Chair, to be reviewed at the Board’s annual meeting in September when new board members are elected. Bell has served on the board as lead director for 5 years. Bell is the Chairman of Onbelay Capital Inc., a Canadian based private equity company.  Mr. Bell is also director of Strongco Corporation (TSX: SQP) and the Royal Canadian Mint (TSX: MNT). He was also on the board at Canopy Rivers (RIV).


William SumnerWilliam SumnerJune 26, 2019
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4min1330

It’s time for your Daily Hit of cannabis financial news for June 26, 2019.

On the Site

Canopy Growth

Canopy Growth Corporation (TSX: WEED, NYSE: CGC)  has acquired Saskatoon-based bio-product extractor KeyLeaf Life Sciences. Canopy Growth said it has been working closely with KeyLeaf – formerly known as POS Bio-Sciences – as a trusted partner building out extraction processes and technology for the past year as it refines its scale extraction model for Canadian and global markets.

Executive Spotlight: Corey Mangold, Co-Founder & CEO of Orchid Essentials

No stranger to entrepreneurship, Corey Mangold started his first company at the young age of 18. Even in his teens, he understood the great risk, and potential reward of going into business for yourself and accepted that challenge head-on.

In Other News

GrowGeneration Corp.

GrowGeneration Corp. (OTCQX: GRWG) announced that it had raised $12.8 million in an upsized private placement offering, issuing 4,123,254 shares at a price of $3.10 and 2,061,632 warrants exercisable at $3.50 per share. All the company’s strategic institutional investors participated in the offering. “With the completion of our oversubscribed offering, the Company now has over $16 million of cash on the balance sheet to execute on multiple acquisitions, with several planned to close in the 3rd and 4th quarters of 2019,” said Darren Lampert, Co-Founder and CEO of GrowGen.

Fire & Flower Holdings Corp.

Fire & Flower Holdings Corp. (TSXV: FAF) announced the closing of a private placement offering. Selling 27,188 convertible debenture units at a price of $1,000 per unit, the company raised $27.18 million. The company also announced its financial results for the three-month period ending on May 4, 2019. Recognized revenue was $9.5 million, with a gross margin of 38.5%. The net loss for the period was $17.1 million. “These results provide a solid foundation upon which Fire & Flower will continue to execute on our growth strategy. Our growth plan is well funded and in addition to the strength of our retail network, we have set ourselves apart as a modern retail company through the Hifyre digital cannabis platform that is reflective in our financial performance” commented Fire & Flower CEO Trevor Fencott.


Debra BorchardtDebra BorchardtJune 26, 2019
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3min2760

Canopy Growth Corporation (TSX:WEED, NYSE:CGC)  has acquired Saskatoon-based bio-product extractor KeyLeaf Life Sciences. Canopy Growth said it has been working closely with KeyLeaf – formerly known as POS Bio-Sciences – as a trusted partner building out extraction processes and technology for the past year as it refines its scale extraction model for Canadian and global markets.

“The KeyLeaf operations and team deliver instant scale at a pivotal stage in our growth, with brand new products coming to market later this year requiring sophisticated extraction capabilities at scale,” said Bruce Linton, Chairman & co-CEO, Canopy Growth Corporation. “This acquisition is the result of a year’s worth of work with a trusted partner, and part of our commitment to always staying a step ahead as leaders in a nascent industry, focused on the long-game one piece at a time.”

KeyLeaf has been working closely with Canopy Growth over the past year to retrofit its Saskatchewan facility to advance technology development and commercialization, in order to process hemp and cannabis biomass, and to conduct pre- and post-extraction processes.  It is anticipated the facility, which is currently in the Health Canada licensing process, will be able to process up to 5,000 kg of input materials daily when operational.

Canopy Growth said that it intends to leverage this facility, along with other owned and partner extraction options, to process its over 5,000 acres of Canadian CBD hemp production, over 160 acres of outdoor cannabis production, as well as any extraction materials outputted from its over 4 million square feet of greenhouse growing operations.  Then it’s off to Smiths Falls to produce the best possible, IP-protected products out there!

Back in November 2018, Canopy Growth assumed control of KeyLeaf for accounting purposes. This meant that KeyLeaf’s financial results were consolidated in the Canopy’s fiscal 2019 financial statements. Through the transaction, Canopy is buying a large-scale Canadian extraction facility as well as an extraction-related facility in the United States to support its U.S. CBD expansion.


Debra BorchardtDebra BorchardtJune 21, 2019
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6min4630

Canopy Growth Corporation (TSX: WEED) (NYSE: CGC) announced its financial results in Canadian dollars for the fourth quarter and fiscal year ended March 31, 2019, with annual net revenue growth rising 191% to $226.3 million. Net revenue rose 313% to $94.1 million.

The net loss for the quarter as $323.4 million and earnings per share for the fourth quarter was -$0.98 which missed analysts estimates by $0.66 causing the stock to fall over 6% in early market trading. This compares to a net loss of $54.4 million or $0.31 per share for the same time period last year.

In addition to the earnings miss, the company noted that its adjusted EBITDA came in at a loss of $257.0 million in fiscal 2019 versus a loss of $36.1 million for 2018. The company attributed the year-over-year loss to the investments made in fiscal 2019 sales and marketing and general and administrative costs.

The average selling price per gram fell 11% from $8.43 last year to $7.49 in this year’s fourth quarter. Although the company did report that medical prices rose 2% and international prices rose 4% for the same time period.

In addition to the losses, sales declined as well on a sequential basis. Gross adult use cannabis sales in the quarter fell 4% to 68.9 million from the third quarter. Medical marijuana dropped 41% from the third quarter to the fourth quarter’s $11.6 million Canopy said this was due to a product transition for Tweed, DNA Genetics, LBS and certain CraftGrow partners to the recreational channel. The company says it has been remedied.

International medical sales generated revenue of $10.1 million in fiscal 2019, but this category’s gross revenue of $1.6 million in the fourth quarter fell 25% year-over-year. Canopy said that “European sales were negatively impacted by supply challenges in Canada, with the company prioritizing its Canadian customers.”

On a positive note, sales of Storz & Bickel vaporizer devices, along with revenue from other strategic sources including extraction services, and clinic partners, resulted in $34 million in other revenue generated in fiscal 2019 giving the sale line a nice extra boost.

“The fourth quarter wraps up a historic year with major steps taken in Canada to build-out our national platform while scaling all of our processes to bring cannabis to market. The third quarter of the year benefitted from months of advanced production while the fourth quarter relied more on efficient throughput and a more automated platform,” said Bruce Linton, Chairman, and Co-CEO of Canopy Growth. “With more product formats coming to the Canadian market later in the year, we are working hard to ensure that we are ready to hit the ground running with products, formats, and brands that Canadians trust.”

Even with these negatives, Canopy remains the cannabis company with the largest market share in Canada. It is also sitting on $4.5 billion as of March 31, 2019, in cash and cash equivalents.  Canopy doubled its harvest size from the fiscal third quarter of 2019 to the fiscal fourth quarter of 2019, and it expects to do so again as it moves from the fourth quarter to the first.

Spending Money To Make Money

The sales and marketing increased from $38.2 million  to $154.4 million as the company invested in brand-building, consumer marketing, and promotional campaigns for the Tweed, Tokyo Smoke, Spectrum Therapeutics, active partner brands, as well as the development of cannabis and CBD consumer products and brands expected to be launched towards the end of fiscal 2020.

The company said that general and administrative expenses in fiscal 2019 were $168.5 million, reflecting the ongoing investments in building commercial capacity, governance and public company compliance costs associated with TSX and NYSE listings, legal and professional services in expanding operations.

The statement said that acquisition-related expenses were $23.4 million in fiscal 2019, with Canopy Growth closing on several transactions in the year including the acquisition of HIKU Brands Company Ltd., ebbu, Inc., Storz & Bickel GmbH & Co. KG, and Canopy Health Innovations Inc. Acquisitions announced subsequent to fiscal 2019 – including This Works Products Limited, Canamo y Fibras Naturales, S.L., and the future acquisition of Acreage – incurred related expenses throughout fiscal 2019 as well.

Canopy and Acreage shareholders approved of the merger this week.


William SumnerWilliam SumnerJune 20, 2019
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3min2610

After weeks of speculation, it is official. Canopy Growth Corp. (NYSE: CGC) has announced that the company’s shareholders have voted overwhelmingly in favor of acquiring Acreage Holdings, Inc. (OTCMKTS: ACRGF).

Although the deal was announced last April, certain shareholders in recent weeks had suggested that the company may not have enough votes to approve the acquisition. With approval from approximately 99% of Canopy shareholders, those suggestions proved to be incorrect.

“On behalf of Canopy Growth, I thank the shareholders of both companies for their vote of confidence in this historic transaction,” said Bruce Linton, Chairman and Co-CEO of Canopy Growth. “Completion of the Transaction is intended to position us to efficiently and effectively enter the US cannabis market once federally permissible. Alongside our international market strategies and US Hemp strategy, we believe the acquisition of Acreage will be a key step in bolstering our position as a truly global company.”

Valued at $3.4 billion, the acquisition represents one of the largest in cannabis history. However, the deal is not yet done. The acquisition still needs to be approved by the Supreme Court of British Columbia and the deal will not take effect until the United States federally legalizes adult-use cannabis.

Once the deal is consummated, Acreage shareholders will receive a payment of $300 million or approximately $2.55 per Acreage Subordinate Voting Share. Holders of subordinate voting shares of Acreage will also receive 0.5818 of a common share of Canopy Growth stock for each Acreage subordinate voting share held at the time of closing of the transaction.

Altogether, Acreage shareholders will hold approximately 12.1% ownership in Canopy Growth (on a pro forma basis) and up to 16.6% if permitted acquisitions are completed prior to the Trigger Event. At this time, it is unclear whether Acreage’s more famous directors such former Speaker John Boehner, former Canadian Prime Minister Brian Mulroney and former Massachusetts Governor and current Presidential candidate Bill Weld will sit on the new board.


StaffStaffMay 24, 2019
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10min4390

Although an unconvincing earnings season has clouded the picture, marijuana stocks still enjoy strong fundamental catalysts

By Josh Enomoto, InvestorPlace Contributor May 16, 2019, 1:00 pm EDT

Since their inception, marijuana stocks attracted significant attention. Due to both investment sentiment – and let’s face it, raw emotions – the cannabis sector absolutely skyrocketed. But now, the segment is attracting attention for failing to live up to analysts’ expectations. Is the honeymoon phase over for weed?

Hardly! While cannabis firms have produced some disappointing results during earnings season, that’s no reason to abandon them. For one thing, the resurgent U.S.-China trade war is incredibly favorable for marijuana stocks to buy. Prolonged tensions will almost surely cause us economic damage. An easy fix here is to legalize weed and fully open the door to a multi-billion dollar industry.

Another reason to stay the course with marijuana stocks to buy is the medicinal-cannabis market. Currently, 33 states have legalized medical marijuana, which is indirectly an indictment against the pharmaceutical industry. As I’ve argued many times before, pharmaceuticals must take at least some responsibility for the opioid crisis. This story alone has converted many people who have realized the benefits of all-natural treatments.

Moreover, medical marijuana is becoming a popular and potentially profitable exported good. We all know that progressive Europe is receptive to cannabis-based therapies. But more shocking is that conservative Asian countries notorious for their draconian anti-drug policies have demonstrated tolerance. Thailand became the first Southeast Asian country to legalize medical marijuana, while South Korea is the first East Asian country to jump onboard.

No matter how you look at it, this development strongly benefits the “botanical” industry. Here are the best three marijuana stocks to buy right now:

Aurora Cannabis (ACB)

Aurora Cannabis (NYSE:ACB) recently issued its earnings results for the first quarter of 2019. Let’s just say the print wasn’t exactly great for ACB stock. Although Aurora Cannabis’ net-revenue haul of 65.2 million CAD exceeded the year-ago quarter’s tally by a country mile, it missed analysts’ consensus target of 67.6 million CAD.

Also, a miss was earnings per share. Wall Street expected a loss of 4 cents per share, but Aurora instead delivered a loss of 16 cents. With such a wide gap, conventional wisdom dictates that you should avoid ACB stock.

Actually, though, even if Aurora Cannabis hit its metrics with flying colors, I wouldn’t pay much attention. Why? Because this is a marathon investment toward an unprecedented sector. As such, you’ll find nearer-term noise. Ignore it.

The key here is that the management is positioning itself for dominance in the lucrative medical-marijuana market. Its acquisition of Whistler Medical Marijuana indicates that the focus is on quality, not quantity. When weak marijuana stocks get flushed out, ACB will remain standing.

Canopy Growth (CGC)

Undeniably, a motivating factor to buy shares of Canopy Growth (NYSE:CGC) is the company’s international presence. Primarily, it puts up a strong showing in the European mainland. Currently, Canopy is pushing both westward and eastward in the region. However, the ultimate prize for CGC stock and others is the U.S. market.

Of course, this is seemingly a pipe dream due to our country’s (misguided) Schedule I classification of marijuana. Still, CGC stock jumped mid-April when Canopy announced a contingent offer to buy out Acreage Holdings (OTCMKTS:ACRGF). Canopy will pay $300 million upfront if the U.S. legalizes marijuana.

Many botanical advocates argue that Schedule I is a relic of the ignorant and racist past. However, it’s still federal law, which means cannabis firms in green-friendly states are still technically at risk.

But thanks to the U.S.-China trade war, I genuinely believe that full legalization is nearing reality. A prolonged conflict with the world’s second-biggest economy will invariably hurt our own fiscal health. That’s why the U.S. has to explore marijuana if they insist on playing hardball with China. If so, look for CGC stock to soar.

Hexo (HEXO)

If you’re like most folks who learned about marijuana stocks to buy late in the game, you’re probably hesitant on exposing yourself to the top-tier names. After all, we see them splattered on investment headlines all over the internet. If that’s you, you might want to check out Hexo (NYSE:HEXO).

For starters, Hexo is an understated name. It generates interest, of course, but not nearly as much as the top dogs. I believe that benefits HEXO stock and is partially the reason why shares have steadily made robust gains. Year-to-date, the cannabis firm’s equity is up over 113%.

That said, HEXO stock has much more upside remaining over the long term. Renowned alcoholic beverage-maker Molson Coors Brewing (NYSE:TAP) has a partnership with Hexo to develop cannabidiol (CBD) infused, non-alcoholic drinks.

CBD recently gained mainstream recognition because it offers the cannabis plant’s health benefits but without levering a negative psychoactive effect. In other words, the compound is a perfect gateway for consumers to try other cannabis-based products.

This is a partnership that provides multiple natural synergies. Even though it’s not quite a household name, you should put Hexo on your list of marijuana stocks to buy.

As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities.

 


William SumnerWilliam SumnerMay 23, 2019
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5min2550

It’s time for your Daily Hit of cannabis financial news for May 23, 2019.

On the Site

Why Canopy Growth’s Deals May Not Translate Into Gains for CGC Stock

Canopy Growth (NYSE: CGC) moved higher after announcing a deal with its investment arm, Canopy Rivers (OTCMKTS: CNPOF). This offers some relief to CGC stock, which had returned to levels not seen since before they announced their buyout intentions on Acreage Holdings (OTCMKTS: ACRGF). Unfortunately, Canopy Growth stock seems to need more.

In Other News

TerrAscend

TerrAscend Corp. (CSE: TER) (OTCQX: TRSSF) reported its financial results for the first quarter of 2019. Revenue was $14.6 milion, up from $5 million in the previous quarter. Adjusted EBITDA was $7.2 million, up from a loss of $7.1 million in the last quarter. “Our sales in Canada continue to be strong, driven by demand from provincial distributors and consumers,” said Michael Nashat, TerrAscend’s CEO. “We are building industry-leading cultivation and processing capabilities. Our Mississauga facility was recently GMP certified by the German authorities – the only such certification granted in the last year – and exports to the EU will commence this quarter.”

MedMen Enterprises

MedMen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) (FSE: A2JM6N) announced that it has been advanced an additional $80 million in accordance with a $250 million secured convertible credit facility with Gotham Green Partners. The company has issued additional convertible senior secured notes to the lenders with a conversion per subordinate voting share of the company equal to $3.29 per share.

Tilray

Tilray, Inc. (NASDAQ: TLRY) announced that its wholly owned subsidiary Tilray Portugal Unipessoal Lda. (Tilray Portugal) has received manufacturing licensed and a Good Manufacturing Practices certification for its Biocant Park manufacturing facility in Cantanhede, Portugal. “This licensing and certification marks a critical milestone for our growth in Portugal and Europe,” said Sascha Mielcarek, Tilray Managing Director, Europe. “The next phase of GMP certification will allow us to utilize the full capacity of our multi-faceted facility and continue to serve more patients in-need.”

Green Thumb Industries

Green Thumb Industries Inc. (CSE: GTII) (OTCQX: GTBIF) announced that it has closed a $105 million senior secured non-brokered private placement financing through the issuance of senior secured notes. The notes will mature on May 22, 2022 and will bear a annual interest rate of 12%, with an option for GTI to extend the date by an additional 12 months. “Strategic capital allocation is fundamental to the business and this financing strengthens our balance sheet at an attractive cost of capital for our business and shareholders,” said GTI Founder and CEO Ben Kovler. “We are well-positioned to capitalize on the attractive market opportunities in front of us. The proceeds will fuel our aggressive growth plans for faster route-to-market in key markets like New Jersey, as well as pursue expansion opportunities that broaden the reach of our brand portfolio.”

 


StaffStaffMay 23, 2019
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8min2650

CGC stock remains in a range as Canopy Growth solidifies its market leadership

By Will Healy, InvestorPlace Contributor

Canopy Growth (NYSE:CGC) moved higher after announcing a deal with its investment arm, Canopy Rivers (OTCMKTS:CNPOF). This offers some relief to CGC stock, which had returned to levels not seen since before they announced their buyout intentions on Acreage Holdings (OTCMKTS:ACRGF).

Unfortunately, Canopy Growth stock seems to need more. CGC has again sold off after briefly crossing the $50 per share mark in late April. While the deals with Canopy Rivers and Acreage boost the long-term prospects of Canopy Growth Corporation, they also show the difficulty of breaking CGC stock out of its current trading range.

Canopy Growth Continues to Improve Market Positioning

Canopy Rivers announced that the portfolio company it owns, PharmHouse Inc., will commit more of its production to Canopy Growth. CGC will now buy an additional 20% of PharmHouse’s output for the next three years. PharmHouse had previously committed 10% of its flowering space to Canopy Growth.

Still, despite what the PharmHouse deal means to Canopy Growth, much of the focus has settled on mergers and acquisitions (M&A). The latest M&A deal for Canopy involves a buyout of New York-based Acreage Holdings. However, in reality, one could better describe this “agreement” as an option. The deal will not close until recreational weed becomes legal across the U.S.

I agree with my InvestorPlace colleague Tom Taulli that the alliance with Constellation Brands (NYSE:STZ) alliance holds Canopy Growth in good stead. I also believe the company has positioned itself for a leadership position in the U.S. in both hemp and cannabidiol (CBD). This benefits the firm without regard to what happens with the Acreage deal. I also see Canopy Growth remaining the market leader in North America when U.S.-based companies can operate with full legal status.

Investors Should Separate Canopy Growth, CGC stock

Still, what helps Canopy Growth may or may not boost Canopy Growth stock. The current hype regarding marijuana stocks renders the price-to-sales (P/S) ratio of around 135X meaningless. However, it also leaves investors without a valuation-based metric with which to evaluate CGC stock.

Hence, this leaves investors with the charts as a guide. For all of the hype, Canopy Growth stock has twice pulled back after spiking above $55 per share in intraday trading. In recent weeks, even the Acreage deal could not keep CGC stock above $50 per share. Moreover, since Jan. 15, it has rarely moved below $40 per share or above $50 per share.

CGC Stock Has Become Range-Bound

Despite its elevated multiple, I do not think it will break through the lower end of the range unless a recession occurs, or the U.S. suddenly makes cannabis legal.

For now, traders have focused on when and how CGC stock will break through on the high end of the range. The elevated P/S ratio will struggle to go even higher without further stimulus. However, seeing the rally fizzle after the stock moved past $50 per share could make one wonder whether stimulus truly helps. Moreover, seeing marijuana stocks (including CGC) tank after weed became officially legal in Canada remains fresh on investor’s minds. It also shows the strange and powerful phenomenon of illegality driving cannabis equities.

Like most, I believe CGC stock will trade at higher levels years from now. However, until we see the stock stay above $55 per share, I do not think that the higher stock price will come in the near term.

Final Thoughts on CGC Stock

CGC stock trades near the high end of its range, and I expect CGC will stay in the range. The PharmHouse deal serves as yet another confirmation that the growth story remains intact for Canopy Growth. However, it will likely not have a material effect on Canopy Growth stock.

Moreover, before the company announced this deal, CGC had fallen back to levels it saw before they announced the Acreage Holdings deal. Simply put, CGC stock has become range-bound.

The prospects of the cannabis industry should keep Canopy Growth stock at an elevated multiple in the near term. However, even a major coup such as the Acreage deal has failed to put CGC stock back on a growth trajectory.

The Acreage and the PharmHouse deals show that Canopy Growth has both the strategic vision and the product needed to lead the marijuana industry. Unfortunately, translating this insight into near-term growth for Canopy Growth stock will prove more elusive.

As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting.

 


William SumnerWilliam SumnerMay 22, 2019
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5min2220

It’s time for your Daily Hit of cannabis financial news for May 22, 2019.

On the Site

Green Market Report Stock Index Releases 2019 Q1 Summary Report

The Green Market Report (GMR), the cannabis industry’s most trusted source for credible in-depth financial and economic reporting, today released its 2019 Cannabis Company Index Q1 Summary Report. The report can be downloaded at GreenMarketReport.com/reports.

A Simple Guide To Making An Investment In Marijuana Stocks

As well as advances in the treatment of pain relief and other medical symptoms, and the cultural aspects which surround recreational use, there is now a growing investment industry around marijuana. In fact, investing in marijuana stocks represents a great opportunity for even the greenest (pun intended) investor. Here are all the things that potential investors need to know.

Organigram Holdings

Due to investor demand, Organigram Holdings Inc. CEO Greg Engel decided to move the company’s exchange listing to the NASDAQ Marketplace. It is one of the few Canadian cannabis companies that the NASDAQ has allowed to list for trading. Engle and CFO Paolo De Luca spoke with Green Market Report on the day the company joined the NASDAQ.

In Other News

Horizons ETFs

Horizons ETFs Management Inc. announced the launch of the BetaPro Marijuana Companies 2x Daily Bull ETF (HMJU) and the BetaPro Marijuana Companies Inverse ETF (HMJI). HMJU will provide leverage exposure to the North American MOC Marijuana Index, while HMJI will provide inverse exposure. “HMJU and HMJI will be the fourth and fifth ETFs we offer that provide exposure to Marijuana equities.” said Steve Hawkins, President and CEO at Horizons ETFs. “HMJU and HMJI are higher-risk ETFs that will give Canadian marijuana equity investors the opportunity to potentially generate returns in both positive and negative markets in the Marijuana sector.”

Canopy Growth

Canopy Growth Corp. (TSX: Weed) (NYSE: CGC) announced it has finalized its acquisition of This Works, a skincare and well-being company with a customer base in 35 countries, in an all-cash transaction for C$73.8 million. Post-acquisition, This Works CEO, Dr. Anna Persaud, will continue to run business operations for the company. “As a leading wellness brand and a pioneer in sleep beauty products, we are passionate about the opportunity CBD offers beauty consumers,” said Persaud. “Canopy Growth will provide the expertise, research, scientific rigour and quality assurance that will allow This Works to drive the agenda in wellness beauty’s ever-evolving market.”

MPX International

MPX International Corporation (CSE: MPXI) (OTC: MPXOF) announced that it has acquired all of the outstanding shares of the Swiss CBD brand HolyWorld SA for C$13.38 million. Under the agreement, MPXI issued HolyWorld shareholders   25,252,830 common shares of the company at a price of C$0.53 per share. Roughly 80% of the issued shares will be placed in voluntary escrow and will be released pending the fulfillment of certain conditions. If the terms are not met by June 30, 2021, the shares will be released to MPXI for cancelation.


AxisWireAxisWireMay 21, 2019
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14min860

SMITHS FALLS, ON, May 21, 2019 /AxisWire/ Canopy Growth Corporation (“Canopy Growth” or the “Company”) (WEED.TO) (CGC) is pleased to announce the appointment of Mike Lee to its executive leadership team in the acting role of Chief Financial Officer (CFO), effective June 1, 2019. Mike’s permanent role as CFO will commence upon receiving Health Canada security clearance required for all Officers and Directors of the Company.

Mike brings a wealth of experience from the consumer goods & beverages industry, having worked for companies such as E. & J. Gallo Winery, PepsiCo, and recently Constellation Brands, where he served as Senior Vice President & CFO for their US$3BWine & Spirits Division. He worked closely with Constellation Brands’ executive leadership to transform their premium Wine & Spirits business, applying financial rigor along the way with a true sense of urgency that translated strategy into action.  Mike also led the business transformation agenda at Constellation Brands, focused on digital enablement and operating model design. Most recently, Mike has served in the role of Executive Vice President, Finance at Canopy Growth Corporation.

Mike’s experience across these mature, category-leading CPG companies along with his experience in business transformation will be an asset as Canopy Growth continues to scale at an exponential rate. Taking advantage of his established strengths in developing high-performance teams, delivering financial results, and his ability to translate strategy into execution will help the Company’s leadership chart a course for the future.

Tim Saunders, whose invaluable contributions to the Company’s direction, finance leadership, and culture will continue to serve the executive team and Board of Directors of Canopy Growth as a strategic advisor in areas of mergers and acquisitions, corporate financing, and business transformation.

“When I welcomed Tim four years ago, Canopy Growth had a market cap of $93 million, two partially licensed production sites in Ontario and a single acquisition under our belt. After more than 26 acquisitions, 8 financings worth over $6.2 billion, the sector’s first TSX and NYSE listings, and reaching a market cap of $21 billion, Tim exemplifies what it means to be a leader at Canopy Growth,” said Bruce Linton, Chairman and Co-CEO, Canopy Growth. “As Tim transitions roles, I am also pleased to elevate Mike into the acting CFO role. His philosophy, accomplishments and all-around track record give me confidence that the Company’s financial health and governance are in good hands. I look forward to working more closely with Mike, benefitting from his vision and expertise as the Company continues growing, both at home and abroad.”

The Board of Directors, co-CEOs Bruce Linton and Mark Zekulin, along with the whole Canopy Growth family, thank Tim Saunders for his dedication and leadership. Having championed the financial health of the Company through an aggressive phase of M&A growth, multiple financing rounds, and historic listings on the TSX and NYSE, both firsts for cannabis companies, Tim’s impact on Canopy Growth is permanent and sincerely appreciated.

Here’s to Future Growth (now with Mike!).

About Canopy Growth Corporation
Canopy Growth (TSX:WEED, NYSE:CGC) is a world-leading diversified cannabis, hemp and cannabis device company, offering distinct brands and curated cannabis varieties in dried, oil and Softgel capsule forms, as well as medical devices through the Company’s subsidiary, Storz & Bickel GMbH & Co. KG. From product and process innovation to market execution, Canopy Growth is driven by a passion for leadership and a commitment to building a world-class cannabis company one product, site and country at a time. The Company has operations in over a dozen countries across five continents.

The Company’s medical division, Spectrum Therapeutics is proudly dedicated to educating healthcare practitioners, conducting robust clinical research, and furthering the public’s understanding of cannabis, and has devoted millions of dollars toward cutting edge, commercializable research and IP development. Spectrum Therapeutics sells a range of full-spectrum products using its colour-coded classification Spectrum system as well as single cannabinoid Dronabinol under the brand Bionorica Ethics.

The Company operates retail stores across Canada under its award-winning Tweed and Tokyo Smoke banners. Tweed is a globally recognized cannabis brand which has built a large and loyal following by focusing on quality products and meaningful customer relationships.

From our historic public listing on the Toronto Stock Exchange and New York Stock Exchange to our continued international expansion, pride in advancing shareholder value through leadership is engrained in all we do at Canopy Growth. Canopy Growth has established partnerships with leading sector names including cannabis icons Snoop Dogg and Seth Rogen, breeding legends DNA Genetics and Green House Seeds, and Fortune 500 alcohol leader Constellation Brands, to name but a few. Canopy Growth operates ten licensed cannabis production sites with over 4.4 million square feet of production capacity, including over one million square feet of GMP certified production space. For more information visit www.canopygrowth.com

Notice Regarding Forward Looking Statements
This news release contains “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of applicable Canadian securities legislation. Often, but not always, forward-looking statements and information can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “estimates”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements or information involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Canopy Growth or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements or information contained in this news release. Examples of such statements include statements with respect to changes to the leadership team. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information, including the Company’s ability to satisfy provincial sales contracts or provinces purchasing all cannabis allocated to them, and such risks contained in the Company’s annual information form dated June 27, 2018 and filed with Canadian securities regulators available on the Company’s issuer profile on SEDAR at www.sedar.com. Although the Company believes that the assumptions and factors used in preparing the forward-looking information or forward-looking statements in this news release are reasonable, undue reliance should not be placed on such information and no assurance can be given that such events will occur in the disclosed time frames or at all. The forward-looking information and forward-looking statements included in this news release are made as of the date of this news release and the Company does not undertake an obligation to publicly update such forward-looking information or forward-looking information to reflect new information, subsequent events or otherwise unless required by applicable securities laws.



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The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


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