CANOPY GROWTH CORP COM NPV (OTCMKTS:TWMJF) has been on a roll once again during the Q3 trading period, with over 60% in gains in the past 90 days. Like its counterparts in the Canadian cannabis patch, Canopy Growth has had to learn to diversify its capital investments to productively use an excess of cash to balance the risks of a volatile and immature commodity market. One of the strategies wrapped up in this pursuit has been an emphasis on intellectual property.
That ties in with the company’s recent announcement that it has filed nine provisional patents pertaining to the applications of cannabis and cannabinoid based therapeutics in sleep and related nervous system disorders. According to the release, “the filing is part of a concerted plan to bring to patients and healthcare providers innovative medicines and health products targeting disease areas with substantial medical needs. As part of this plan, Canopy Health is collaborating with respected world-class academic researchers and clinicians, and working with leading research organizations and regulators in jurisdictions of interest to develop and register these breakthrough products.”
CANOPY GROWTH CORP COM NPV (OTCMKTS:TWMJF) is one of the bigger growers. The company produces and sells medical marijuana in Canada. It offers dry cannabis and oil products primarily under the Tweed and Bedrocan brands. It also sells its products through online.
According to company materials, “Tweed is the most recognized marijuana production brand in the world. It has built a large and loyal following by focusing on quality products and meaningful customer relationships. Tweed doesn’t just sell marijuana, it facilitates a conversation about a product we’ve all heard about but haven’t met intimately yet. It is approachable and friendly, yet reliable and trusted. As marijuana laws liberalize around the world, Tweed will expand its leading Canadian position around the globe.”
Also from their materials, “Bedrocan is the epitome of medical-grade cannabis. Bedrocan BV pioneered medical cannabis in Holland through decades of selection and refinement, leading to standardized, whole bud cannabis strains that patients can rely on. Bedrocan Canada supplies the same standardized strains to the Canadian market through exclusive licensing rights to the American continents, an arrangement it will also enjoy for all future genetic advancements. Due to its consistency over time, Bedrocan’s strains have been used in clinical research in seven European countries. That commitment to research didn’t stay on the east side of the Atlantic – Bedrocan Canada recently launched one of the largest clinical cannabis studies in the world, the EQUAL Study, to evaluate quality of life before and after medical cannabis use.”
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As we covered above, we continue to see a trend of diversification of IP investment as an antidote to the uncertainty posed by a tether to an immature and volatile commodity just getting its footing.
“The cannabis industry is an industry with centuries of anecdotal evidence, but limited in deep and credible scientific research,” said Bruce Linton, Chairman & CEO, Canopy Growth. “By enabling world-class research, we are confident that we can contribute to an increased understanding of cannabis as an effective and safe method of treatment and create products that will improve lives. Sleep presents a first opportunity for Canopy Health to advance in this direction, with more soon to follow.”
Traders will note 23% piled on for shareholders of the company during the trailing month. Market participants may want to pay attention to this stock. TWMJF has a history of dramatic rallies. Furthermore, the stock has registered increased average transaction volume recently, with the past month seeing 52% over what the stock has registered over the longer term.
Currently trading at a market capitalization of $1.48B, Canopy Growth has a significant war chest ($116M) of cash on the books, which is balanced by about $1.7M in total current liabilities. One should also note that debt has been growing over recent quarters. TWMJF is pulling in trailing 12-month revenues of $48.8M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 127.3%. You can bet we will update this one again as new information comes into view. Sign-up for continuing coverage on shares of $TWMJF stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: We hold no position in $TWMJF, either long or short, and we have not been compensated for this article.