Growing Like A Weed: Marijuana Stock Canopy Growth Expands Production
Canopy Growth (CGC) has expanded its production capacity in Canada by around 1.1 million square feet, as marijuana stocks prepare for recreational legalization there next week.
The firm announced license amendments have been issued by Health Canada to its wholly-owned subsidiary BC Tweed and its majority-owned joint venture Les Serres Vert Cannabis.
Canopy Growth's expansion means the marijuana stock has now established a 5.6 million square feet going platform, with more than 75% of this now being licensed.
"Our regulatory team and the teams in Delta and Mirabel have worked hard to bring these large-scale greenhouses online," Canopy Growth co-CEO Mark Zekulin said in a press release. "Credit is due to these teams and the entire organization as we continue the push forward into a transformative year for our business."
The company said the expansion move will increase the quantity and diversity of products available to retail and wholesale customers in the recreational market and reinforce the product supply available to medical customers.
But while Canopy Growth is growing like a weed, the firm also said it needs more even capacity before its entire growing platform is operational.
Marijuana Stocks Mixed
It has already been a big week for the marijuana stock. It said Tuesday it had "completed a legal transfer of cannabis products" to a "research partner" in the U.S. from Canada. The export, the company said, was for medical research, and came "pursuant to an import permit issued by the federal United States Drug Enforcement Administration."
The firm said the export adds to its commitment to building out its intellectual-property reserves. Cowen & Co. has said the company is pursuing nearly 40 U.S. patents related to anxiety, insomnia, fibromyalgia and other ailments.
Canopy Growth stock has shot up in price since it started trading on the New York Stock Exchange. It is now 54.5% up on its May 24 opening price of 30.85. But while its Relative Strength Rating is a mighty 98, its EPS Rating, which tracks earnings per share growth, is a dire 2.
Walmart Eyes Weed
Meanwhile the Canadian unit of Walmart (WMT) is looking into possibly selling cannabis-based products but also said it has no immediate plans to get into the business.
It has become the first major retailer to express interest in partaking in Canada's blossoming marijuana industry as recreational use becomes legal there next Wednesday.
A host of major U.S. firms have are exploring the possibility of entering the market for cannabis-infused products.
Alberta-based Aurora Cannabis was reportedly in talks with Coca-Cola (KO) to potentially produce cannabis-infused beverages. Coca-Cola has said it is tracking the marijuana drinks market for a possible entry.
Canada-listed Aurora Cannabis will join the growing list of marijuana stocks trading on U.S. exchanges. It said Tuesday it hopes to trade under the ticker ACB on the New York Stock Exchange.
It filed a registration form to list on the New York Stock Exchange on Friday. Aurora will continue to trade on the Toronto Stock Exchange. It would delist from U.S. over-the-counter trading if the NYSE accepts its request. It hopes to start trading on the NYSE before the end of the month.
Aleafia, another cannabis company in Canada, is also set to add to the wave of U.S.-listed marijuana stocks.