The Next Big Step for Canopy Growth Corp (OTCMKTS:TWMJF)

The Next Big Step for Canopy Growth Corp (OTCMKTS:TWMJF)


It’s always a good idea to keep a close eye on Canopy Growth Corp (OTCMKTS:TWMJF). The stock is arguably the most well-established, leading play in the Canadian cannabis patch. And now it is set to become even more established. Recall that this was the first player in this space to receive a major strategic investment from a Fortune 500 firm. Now, apparently, it’s about to take a major new step.

Specifically, the company just announced it has applied to list its common shares on the New York Stock Exchange. According to the release, “the Company currently anticipates that, subject to the receipt of all required approvals, its common shares will begin trading on the NYSE before the end of May 2018. In advance of listing on the NYSE, Canopy Growth will file a Form 40-F Registration Statement with the United States Securities and Exchange Commission. The listing of the Company’s common shares on the NYSE remains subject to the approval of the NYSE and the satisfaction of all applicable listing and regulatory requirements.”

Canopy Growth Corp (OTCMKTS:TWMJF) is one of the bigger growers in the industry. 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 noted in the most recent release, Canopy Growth’s common shares will trade on the NYSE under the ticker symbol “CGC” and will continue to trade on the TSX under the ticker symbol “WEED”. A trading date will be made public once all regulatory formalities are satisfied.

In announcing the application to list on a U.S. stock exchange, Canopy Growth’s Chairman & CEO, Bruce Linton, commented: “Since becoming the first regulated cannabis producer to list their shares in North America in 2014 our team has focused on building credibility through consistent execution. Once finalized, listing our shares on the NYSE will represent a continuation of our upward trajectory as we build the global cannabis industry.”

The chart shows 11% added to share values of the listing over the past week of action. This is emblematic of the stock. TWMJF is a stock with a past that has featured a litany of sudden rips to the upside. In addition, the listing has witnessed a pop in interest, as transaction volume levels have recently pushed 19% beyond what we have been seeing over the larger time frame.

Currently trading at a market capitalization of $2.6B, TWMJF has a significant war chest ($238.4M) of cash on the books, which compares with about $1.5M in total current liabilities. TWMJF is pulling in trailing 12-month revenues of $69.8M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 122.5%. We will update the story again soon as developments transpire. 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.

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