History of the Company
The Canopy Growth Corporation is the new name of Tweed Marijuana Inc., which was formed in 2014 in Ontario, Canada, by friends Bruce Linton and Chuck Rifici. It changed its name in 2015, partly to make it more attractive to investors in countries where marijuana, or cannabis, still has a negative reputation.
The company began trading as CGC on the NYSE in May 2018. Linton is its current co-CEO, along with Mark Zekulin, who is also CGC’s President. Canopy got in early on the coming cannabis boom, rightly predicting that Canada’s government would fully legalize the plant’s production, sale and use. This became the law in Canada on 17 October 2018.
From its roots as a home business, which made use of a former beer factory, Canopy Growth has had a meteoric rise to fame and fortune. Its market capitalization had grown to $14 billion USD by October 2018, and Linton was named CEO of the Year by prestigious Canadian business organs.
Trading Canopy Growth: What You Need to Know
- Opening day value of CGC’s shares was slightly overestimated. They opened at $30.85, but had fallen slightly to $28.20 at the end of trading, a loss of 6.22%. That meant its opening day equity amounted to $7.48 billion on the Toronto Stock Exchange (TSX).
- As at 3 January 2019, CGC’s share price on the NYSE is $28.92. This is a very steady maintenance of opening day stock prices. This reflects the fact that confidence remains high that the future medicinal cannabis market.
- Canada became the first of the G7 or G20 countries to introduce legalization laws. This itself is an encouragement to some investors that other major economies will follow suit. These countries will be looking at the relative success or failure of the legislation in Canada. CGC stock prices are likely to follow confidence in those developments.
- CGC pioneered the development of softgels, which incorporate cannabis into edible chews. This is aimed squarely at the aphrodisiac market, which is predicted as being a growth area for the company in the future.
- In November 2018, CGC completed a deal with beer, wines and spirits producer Constellation Brands, worth $5 billion USD to the company. CGC hopes to incorporate cannabis into drinkable products, including sleeping aids.
- CGC has business interests in Australia, Brazil, Chile, the Czech Republic, Denmark, Germany, Jamaica, Lesotho and Spain. These businesses are a combination of pharmaceuticals producers and cannabis growers.
- Some forecasters predict CGC share prices to rise to over $50 over the course of 2019.
Anyone wanting to trade Canopy Growth stock should analyze the current state of this sector of the market carefully before trading.Trade CGC