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Canopy Growth Corp. of Smith Falls, Ont., Hit the headlines and propelled cannabis stocks to new heights over the summer by announcing that brewer Corona Constellation Brands Inc. was going to invest 4 billions of extra dollars in society.
Charged by both companies as a strategic partnership, this additional $ 4 billion investment adds to the 9.9% stake Constellation bought last October and allows the company to be bought back. by Constellation – via warrants likely to increase its stake. less than 50% – or continue to work with the beverage company to create a range of cannabis-based products for consumers that may one day appear on the markets of dozens of countries. In many ways, the massive injection of money gives Canopy
GSC + 14.24%
CANNABIS, + 13.64%
rivals, who typically have a lot less money on their balance sheets and do not have the overall resources and expertise Constellation has
STZ, -0.88%
can offer.
Even without the investment of Constellation, Canopy, among its rivals, has the largest square footage to grow pot, agreements with all Canadian provinces to sell its various products and a good story for the non-investor public : The disproportionate growth of the rejuvenated Smith Falls business – decimated when Hershey Co.
HSY + 1.50%
has pulled its plant out of the eastern Ontario city – where it maintains its head office and a large facility for growing and processing. In fact, Canopy bought the old Hershey building and, thanks to its growing workforce, is making a significant contribution to the local economy.
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What are Canopy's activities: recreational or medical?
Canopy currently generates a significant portion of its annual revenue of C $ 77.9 million ($ 60.1 million) and shows no signs of slowing down its investments and plans for this business line in Canada and Canada. in the world. But the investment in Constellation suggests that General Managers Bruce Linton and Canopy are undertaking a bold gamble on recreational use by adults, in Canada and in other countries, while at the same time, it's a good thing. they legalize the substance.
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Intellectual property
Canopy has filed 82 patents worldwide to date and claims state-of-the-art culture and processing facilities across the country. Canopy Rivers Inc., a company created by Canopy Growth earlier this year, is a likely source of new intellectual property. As a venture capital company, Canopy Growth retains control of the company and will seek to make the most of its investments.
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Supply contracts
In Canada, Canopy has an agreement with each of the 10 provinces of the country and has an agreement with the Yukon Territory.
Beyond Canada, Canopy has distribution agreements in three countries – Germany, the Czech Republic and Australia – as well as research centers in Brazil and Australia. It also builds or licenses licensees or operates in seven countries outside of Canada. It is also exporting pot to five countries, including the United States, for a clinical trial. Overall, the company is present in 11 countries on five continents.
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How many weeds grow and at what price?
During fiscal year 2018, Canopy sold 8,708 kilograms of cannabis and equivalents and harvested 22,513. Canopy reported selling pot at $ 8.24 Canadian per gram, compared to 7, $ 40 Canadian per gram the previous year.
The company said in its annual report that it would no longer report its cost per gram because this data point calculates the weight of the facility. In the future, the company believes that the measurement of levels of THC and CBD active ingredients will be greater; Leaders also expressed the belief that other more useful indicators would become evident as recreational use in Canada. Finally, Canopy stated that there is no industry standard for comparisons per gram.
In total, the company has 15,726 kg of pot powder, 6,696 liters of cannabis oil and 356 kg of capsules, according to its annual report. In October, Canopy announced 5.6 million square feet of facilities for growing, processing, extracting and manufacturing at 10 different sites.
How many pots can he grow?
The company has a production capacity of 3.2 million square feet in addition to its current capacity.
Canopy Growth shares rose 131% in 2018, while the S & P 500
SPX, -0.59%
increased by 3.5% and the Dow Jones Industrial Average
DJIA, -0.35%
slightly increased 2.7%.
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