Canada’s Canopy Growth, sometimes called the world’s largest cannabis company, said it was halting several operations on three continents and expects its restructuring plan to result in a charge of up to C$800M (US$567M).
- The company said it was selling operations in Africa, and curtailing hemp cultivation in the U.S. and Colombia. In recent weeks it has also shuttered several facilities in Canada.
- The company is still the favorite Canadian weed stock of influential Cowen analyst Vivien Azer.
- American liquor company Constellation Brands is a major investor in Canopy.
- Here’s Equity Guru‘s gimlet-eyed assessment.
- MarketWatch‘s Max Cherney also profiles Canopy competitor Organigram which was among the first companies to sound the alarm about Covid-19. It has laid off roughly half its staff.
- ????WW Canada has the best coverage of the Canadian industry.
Elsewhere on Wall St.: Business Insider takes a look at special purpose acquisition vehicles, or SPACs, the financial structures used to take many cannabis companies public. Investors have poured $2.8 Billion into cannabis focused SPACs since the beginning of 2019.
- This accounts for about 15% of all SPAC investments.
- Citigroup lead Bespoke Capital Acquisition Corp.’s $350M IPO in August, but much of Wall Street remains leery. “This is clearly a gray area.”
- An article in conservative journal The National Interest found, “Canada only has good news,” about legalization. “Nearly all the available evidence counters the core arguments of legalization opponents.”