CANOPY GROWTH CORP (OTCMKTS:TWMJF) continues to impress in the wake of its landmark announcement late last month of a minority stake investment by Constellation Brands (NYSE:STZ.B). The latest from the company is yet another strong diversification of its cash pile in the form of its announcement last week that it and Canopy Rivers Corporation, along with funds advised by JW Asset Management LLC have entered into subscription agreements with TerrAscend Corp. pursuant to which the Investors will acquire from TerrAscend, on a non-brokered private placement basis, 47,727,273 units of TerrAscend at a price per Unit of CAD$1.10, for aggregate gross proceeds of CAD$52,500,000.
According to the release, “each Unit sold in the Private Placement will consist of one common share of TerrAscend and one common share purchase warrant of TerrAscend, with each Warrant entitling the holder to purchase an additional Common Share for a period of 36 months from the closing date of the Private Placement at an exercise price of CAD$1.10.”
CANOPY GROWTH CORP COM NPV (OTCMKTS:TWMJF) is one of the bigger growers. The company produces and sells medical marijuana in Canada. It offers dry cannabis and oil products primarily under the Tweed and Bedrocan brands. It also sells its products through online.
According to company materials, “Tweed is the most recognized marijuana production brand in the world. It has built a large and loyal following by focusing on quality products and meaningful customer relationships. Tweed doesn’t just sell marijuana, it facilitates a conversation about a product we’ve all heard about but haven’t met intimately yet. It is approachable and friendly, yet reliable and trusted. As marijuana laws liberalize around the world, Tweed will expand its leading Canadian position around the globe.”
Also from their materials, “Bedrocan is the epitome of medical-grade cannabis. Bedrocan BV pioneered medical cannabis in Holland through decades of selection and refinement, leading to standardized, whole bud cannabis strains that patients can rely on. Bedrocan Canada supplies the same standardized strains to the Canadian market through exclusive licensing rights to the American continents, an arrangement it will also enjoy for all future genetic advancements. Due to its consistency over time, Bedrocan’s strains have been used in clinical research in seven European countries. That commitment to research didn’t stay on the east side of the Atlantic – Bedrocan Canada recently launched one of the largest clinical cannabis studies in the world, the EQUAL Study, to evaluate quality of life before and after medical cannabis use.”
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“Canopy is excited to be partnering with an emerging pharma focused LP in TerrAscend, and to be collaborating further with Jason Wild, an exceptional global healthcare investor and executive,” said Canopy’s Chairman and CEO, Bruce Linton. “Since first meeting Jason over three years ago, I have been continuously impressed with his unparalleled knowledge of the pharmaceutical sector, the ethical approach he takes with his investments, and the commitment he makes to finishing what he starts with his investee companies. Collaborating with Jason as the new Chairman, and building upon what the team at TerrAscend has accomplished to date is an exciting, strategic, and mutually beneficial value proposition for all parties.”
“After evaluating and investing in the emerging cannabis sector for the past several years, I’ve been looking for the right opportunity to take a more active leadership position and make a significant financial commitment with the right company. Partnering with the largest cannabis company in the world, some of the most knowledgeable cannabis investors in this market, and the pharma focused team of operators at TerrAscend positions us to draw insight from our collective experience and compete successfully in the globally emerging cannabis sector,” says Jason Wild, President of JW Funds.
Recent action has seen 43% added to share values of the stock over the past month of action. Market participants may want to pay attention to this stock. TWMJF is a stock who’s past is littered with sudden rips. Moreover, the company has benefitted from a jump in recent trading volume to the tune of above 260% over the long run average.
Earning a current market cap value of $1517M, TWMJF has a significant war chest ($116M) of cash on the books, which stands against about $1.7M in total current liabilities. One should also note that debt has been growing over recent quarters. TWMJF is pulling in trailing 12-month revenues of $48.8M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 127.3%. We will update the story again soon as developments transpire. Sign-up for continuing coverage on shares of $TWMJF stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $TWMJF, either long or short, and we have not been compensated for this article.