Canopy Growth Corp (TSE:CGC) has quite many opportunities awaiting in the imminent months subsequent to good update from a government agency. Canada’s task force on pot legalization and regulation published a report giving dozens of recommendations. It marks next step taken forward towards the cannabis legalization on a national level. The firm indicated that retail locations and mail orders of the crop should be made accessible. Substance legalization will not be talked until the spring.
The news was promising for Canopy Growth as soon after the news its stock closed in green. Other marijuana firms cheered the news as well, including Aurora Cannabis Inc. and Aphiria Inc. The organization’s suggestions as far as structures, dosage and how each province will handle the matter is in line with what firm has had in mind for the growing market.
In Canada, Canopy Growth is extending its presence. It is on the verge of buying another major cannabis firm in Mettrum Health Corp. This step will combine the firms into one company that will have 40,000 medicinal marijuana patients, recording around 50% of the country’s total medicinal cannabis users. The measure will help to reduce production costs of the substance and infrastructure expenses.
The move will encourage shareholders from both firms immensely as Mettrum investors will get 0.7132 common shares of Canopy Growth stock a common share of Mettrum. It will give shareholders about 22.3% of the new firm, while Canopy Growth shareholders will have 77.7% stake on it.
Going forward, Bruce Linton, the CEO of Canopy, discussed the firm’s future plans, which comprise other pending deals that will help support his firm’s portfolio in Canada and abroad. The firm currently has nearly $68 million to spend in its short-term plans, comprising a deal it has in place to acquire MedCann, which is a pharmaceutical supplier that supplies to German pharmacies.
The agreement is pending approval from investors, and it will be compensated in CGC shares, which are trading close to $10 a piece. This deal is valued at around $7.2 million, and it is one of numerous acquisitions in tab for Canopy Growth.