There were a couple of news developments revolving around the world’s largest cannabis company. Firstly of which was the announcement that Canopy Growth Corp (TSE: WEED)(NYSE: CGC) latest, high-tech greenhouse in Quebec has received its final licenses needed to enter full operation.
The new Vert Mirabel facility, which was first established in December 2017, adds a total of 700,000 square feet of production and cultivation space in light of the new licenses. So far, Canopy’s total Canadian footprint is estimated at 4.6 million square feet, getting close to the company’s 5.6 million goal.
“We are thrilled that the operational infrastructure at Vert Mirabel is now fully online with over 500,000 sq. ft. already in production. Vert Mirabel is a key asset for Canopy Rivers as it provides exposure to a commercially scaled source of locally grown, premium quality cannabis for distribution into Québec and across the country,” said Olivier Dufourmantelle, Chief Operating Officer, Canopy Rivers. “The final licence for Vert Mirabel strengthens our operations and will allow us to increase supply to meet the recreational market demand. From everyone at Canopy Growth, we congratulate the Bertrand family and their team for achieving a fully licensed, large-scale cannabis operation in under 18 months,” added Mark Zekulin, President and co-CEO.
While Canopy Growth still falls behind it’s slightly smaller rival, Aurora Cannabis (TSE: ACB)(NYSE: ACB), when it comes to sheer production capacity, Canopy does have an edge in a number of other areas in the cannabis world.
Mainly, having achieved a partnership with a prominent brewing company ahead of Canada’s CBD-edibles legalization. Additionally, Canopy has an edge over Aurora in terms of producing hemp in the U.S.
The second news development today for Canopy came from one Wall Street analyst which downgraded it’s revenue expectations for the company. A story reported by Barrons goes on to explain that Canopy’s growth has stagnated recently as there are not enough retail stores to fully cater to the population.
BMO Securities analyst Tamy Chen released a note late Monday that went on to say that since Canadian producers like Canopy sell most of their cannabis wholesale, the slow rollout of retail stores will end up slowing down future revenues in the coming quarters. Overall, she pulled back her revenue forecasts for the company.
Shares of Canopy Growth didn’t respond much to the news, staying relatively flat throughout Tuesday as both the good and the bad balanced each other out. Over the past month, shares of the world’s top cannabis company have fallen from C$70 per share down to C$60, a significant decline for the $21-billion-dollar company.
Canopy Growth Company Profile
Canopy Growth Corp through its subsidiaries is the licensed producer of medical marijuana in Canada. The company grows, produces and sells medical marijuana. It operates diverse brands and variety supported by over half million square feet of indoor and greenhouse marijuana production.
It sells medical marijuana under various brand names including Tweed, Bedrocan, and Mettrum. A majority of the revenue is derived from the sale of medical marijuana by Tweed and Bedrocan in Canada. – Warrior Trading News