Canopy will open hemp processing operations in seven American states but will not move forward with producing REC or MED in the U.S. until federal legalization.
- US producers are undervalued compared to Canadian LPs, and the Canopy–Acreage deal is focusing investors’ attention upon the disparity in values between U.S. and Canadian companies. With the backing of Canopy, the deal allows Acreage to benefit from lower cost of capital. GMP Securities analyst Rob Fagan said US producers have always been undervalued, and remain more so than ever.
- Canopy CEO Bruce Linton said the company’s merger with Acreage is “a complex transaction to achieve a simple goal, and the goal is we want to have exposure to the U.S., and we want to do it in a way that we [do] not break the federal laws,” while also providing Acreage access to Canopy brands when REC becomes “federally permissible” (either legalized federally, or given to U.S. states to decide) in the United States.
- Analyst Andrew Carter, launching coverage of large-cap Canadian stocks, gaves Canopy, and no-other company, a “buy.” rating.
- Linton incorrectly told Fox Business that illicit cannabis may be contaminated with fentanyl. Faced with protesters online, MED activist–turned–Canopy figure Adam Greenblatt reported he had spoken to Linton and corrected him, saying it was a mistake and not a deliberate lie. Linton acknowledged his error, but said his main point stood—any unregulated cannabis may contain potentially harmful additives.
Vice, Twitter, The Leaf
- Newfoundland’s Liberal attorney general will investigate the province’s supply deals. Opposition Conservatives have suggested the Liberal government displayed favouritism toward Canopy (a company started by two former Liberals). The decision has proven popular.
CBC Newfoundland, CityNews
- MJ Biz Daily published a list of Canada’s Most Reputable Cannabis Producers, but the most striking takeaway is that even Aurora, ranked number one, was unknown by 76% of respondents—while 89% didn’t know CannTrust, ranked number three.
MJ Biz Daily
- WeedMD launched a REC brand called “Color,” with the American spelling, which for some reason drives me absolutely crazy, but might also suggest plans for eventual U.S. expansion.
An anonymous source close to the company told me, “I think it honestly started as a spelling mistake, but they’ll say it’s to help prepare for the U.S market.”