My thoughts on Canopy Growth Corp (WEED)

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Canopy Growth Corp

1. They are the market leaders without question, they have more registered patients than any other company.  This patient acquisition will be tremendously beneficial when the recreational market comes and advertising is limited.  Their fan base will already be established for the brand.  They are really the only company putting forth any successful effort for branding.

2. They are diversified into three major brands, Tweed, Bedrocan and Mettrum Health Corp.  They also own late stage ACMPR applicants in Quebec and Saskatchewan.

3. They are going global. They have stake in AusCann out of Austrailia, they opened Bedrocan Brazil and have approval to export to patients in Germany. Bedrocan is also exporting from the Netherlands to seven different European countries.

4.  The government of Canada announced April 2017 that they will table legislation to legalize and regulate cannabis in Canada by July 2018.

5. They are working with the Canadian Drug Policy Coalition and Mothers Against Drunk Driving to raise awareness about the consequences of driving impaired which is great public relations for the company and industry as a whole.

6. They have produced “Tweed Mainstreet” which is an online one stop shop for cannabis from all of their subsidiary brands.  It will also soon include “Craftgrow” which will be smaller companies selling products in Tweed’s online store.

7. Their next earnings report is expected 26 Jun 17 which should show a significant increase in sales in my opinion.

8. Their assets are 281 million compared to 29 million in liabilities, proving a great balance sheet.

9 They were the first publicly traded medical cannabis company in Canada and continued that trend to become the first medical cannabis company in North America to be listed on a major exchange, the Toronto Stock Exchange.

10. In total they have 655 000 sq ft of working grow space which currently makes them the most prepared company for the recreational market upon legalization.

11. Tweed has announced the completion of its state of the art breeding facility within its Smith Falls, Ontario headquarters. It’s the first of its kind in the industry. Basically, Canopy Growth Corps subsidiary Tweed’s master breeder has teamed up with DNA Genetics to work with male and female plants breeding entirely new strains of cannabis under strict control. In house researchers will soon be capable of selecting seeds based on genetic traits in a lab rather than growing them and evaluating them as mature plants. This will save tremendous amounts of time as well as production space.

12.  “Canopy Rivers’ has now been launched, this is an opportunity for Canopy to include smaller players into their empire.  It’s a streaming deal so instead of Canopy Rivers buying ownership in smaller companies they will actually strike a deal with them to purchase their production of cannabis.