FinancialBuzz.com’s latest Buzz on the Street Show: Featuring Our Corporate News Recap on “Canopy Growth collaborates with Parent Action on Drugs to launch digital cannabis education tools.”
Canopy Growth Corporation (TSX: WEED) (NYSE: CGC) announced the next phase in its partnership with Parent Action on Drugs (“PAD”) and Canadian Students for Sensible Drug Policy (“CSSDP”) which will see PAD launch two new digital tools to help youth along with their parents, adult caregivers, and influencers, on how to make responsible decisions about cannabis use.
Canopy Growth is a world-leading diversified cannabis, hemp and cannabis device company, offering distinct brands and curated cannabis varieties in dried, oil and Softgel capsule forms, as well as medical devices through the Company’s subsidiary, Storz & Bickel GMbH & Co. KG. From product and process innovation to market execution, Canopy Growth is driven by a passion for leadership and a commitment to building a world-class cannabis company one product, site and country at a time. The Company has operations in over a dozen countries across five continents.
The widespread growth of the cannabis industry has caught the interest of numerous public and private sectors. Currently, the cannabis industry is an emerging global marketplace which has witnessed immense growth throughout recent years. The exponential growth of the industry is largely due to the ongoing global legalization efforts which make it hard for companies to ignore the plant. Particularly, companies involved in the tobacco and beverage industry have taken a keen interest as the two sectors have poured investments into cannabis-based companies or even launched their own cannabis operations. The biggest factor as to why the tobacco and beverage industries are investing in cannabis is that many are witnessing their primary revenue drivers decline. For instance, the Centers for Disease Control and Prevention reported that cigarette smoking among U.S. adults declined from 20.9% in 2005 to just 15.5% in 2016. Moreover, The Wall Street Journal’s industry tracker, IWSR, highlighted that U.S. alcohol volume dropped by 0.8% in the past year, a slight increase on the 0.7% decline in 2017. Conversely, the cannabis industry is witnessing its user base and support increase each year and public opinion has consistently proven that most Americans support the legalization of cannabis. According to a survey by Gallup, approximately 60% of Americans support the legalization, which is significantly up from just 44% in 2014. While cannabis is still illegal in most countries, its growing adoption highlights the profound shift the industry is currently undergoing. According to data compiled by BCC Research, the North American legal cannabis market was valued at USD 10.7 Billion in 2018. By 2023, the market is expected to reach USD 25.5 Billion while exhibiting a CAGR of 18.9% during the forecast period from 2018 to 2023.
The expansion of the cannabis market has led many companies to publicly list their shares onto major stock exchanges around the world. Predominantly, cannabis companies are headquartered in Canada, however, many have moved to establish operations across borders and in regions like the U.S. and Europe. Notably, a handful of multi-billion dollar cannabis corporations have moved to list their shares on the two largest exchanges in the world: The New York Stock Exchange and the Nasdaq Stock Exchange. However, skepticism remains among some investors because of the federal legality issue revolving around cannabis. In particular, the U.S. has not federally legalized cannabis, yet the country still accounts for the largest market share globally. Despite the regulations imposed on companies within the U.S. and Canada, many have experienced substantial growth in terms of revenue, with some companies seeing their revenue grow by five-fold in just one year. Furthermore, if cannabis does eventually become legal around the world or particularly within the U.S., it would open a wide array of investment opportunities for the public. “It’s an exciting time for investors in the new marijuana industry who are now able to purchase shares in companies producing cannabis products for the consumer and medical markets for the first time ever. It has also been somewhat frustrating however, because those investment choices are currently limited by an inconsistent patchwork of laws,” said David Borun, Stock Strategist at Zacks. “If marijuana becomes broadly legal at the federal level in the US, there is likely to be a deluge of investment opportunities as a new crop of surprisingly sophisticated new companies seek to raise capital on major exchanges.”
For more information, please visit: Canopy Growth Corporation
For more corporate news on Canopy Growth Corporation, check out the Buzz on the Street
About Buzz on the Street: One of FinancialBuzz.com’s latest corporate and financial news shows, covering the latest trending stock market news. Buzz on the Street looks to become a leader in corporate video news dissemination. Buzz on the Street is 100% original content, brought to you by Financial Buzz Media.