tiprankstipranks
Canopy Growth Closes Acquisition of Supreme Cannabis
Market News

Canopy Growth Closes Acquisition of Supreme Cannabis

Canopy Growth (WEED), one of the world’s largest cannabis companies, announced on Wednesday that it has completed the acquisition of The Supreme Cannabis Company (FIRE). Canopy has acquired 100% of the issued and outstanding common shares of Supreme.

The acquisition of Supreme further strengthens Canopy’s global leadership position in the Canadian recreational market and creates a pro forma market share for the fourth quarter of fiscal 2021 of 18.1%. In addition, the acquisition creates an immediate value creation opportunity with synergies estimated at C$30 million to be seized over the next two years.

Canopy CEO David Klein said, “Through the addition of Supreme, we’re strengthening our leadership position by offering Canadian consumers a differentiated brand portfolio – including the addition of 7ACRES, which further bolsters our premium product segment. Supreme has demonstrated the ability to cultivate premium quality flower at low cost and we’re excited to leverage these capabilities to further our leadership in the Canadian market as we scale these newly added brands and accelerate revenue growth.” (See Canopy Growth stock chart on TipRanks)

Earlier in June, Stifel Nicolaus analyst W. Andrew Carter maintained a Sell rating on WEED with a C$21.00 price target. This implies 27.7% downside potential.

Carter stated that the stock’s high valuation doesn’t fully reflect the importance of ongoing expenses and the difficulty Canopy has in accelerating sales growth profitably to meet medium-term growth targets.

Overall, WEED scores a Hold rating among Wall Street analysts based on 3 Buys, 7 Holds, and 1 Sell. The average Canopy Growth analyst price target of C$35.19 implies 21.2% upside potential to current levels.

TipRanks’ Smart Score

WEED scores a 1 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock returns are very likely to underperform the overall market.

Related News:
The Valens Closes Green Roads Acquisition
Fire & Flower Q1 Revenue Almost Doubles, Loss Widens
HEXO Posts Disappointing Q3 Results; Shares Plunge 6.5%

Trending

Name
Price
Price Change
S&P 500
Dow Jones
Nasdaq 100
Bitcoin

Popular Articles