CANOPY GROWTH CORP COM NPV (OTCMKTS:TWMJF) continues to enjoy the good times. There have been some cannabis stocks we have soured on, but this is not one of them. Shares of the company just logged a new closing high on Wednesday and the catalyst was clear: the company just announced that it has entered into a definitive joint venture agreement to form a new company, BC Tweed Joint Venture Inc., together with a large-scale greenhouse operator to develop 1.3 million sq. ft. of new greenhouse growing capacity in British Columbia “with an exclusive option to develop a further 1.7 million sq. ft. of existing greenhouse infrastructure at a second BC location.”
According to the release, “applications have been submitted for both sites and subject to Health Canada and other standard regulatory approvals, as well as a bit of luck, the Company is hopeful that it will have product available from the Joint Venture as soon as July 1, 2018.”
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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As noted above, shares of TWMJF continue to be on fire in recent action, with the company continuing its run of diversification.
As noted in the company’s latest release, “under the terms of the agreement and subject to third-party approvals required by the Partner, the Joint Venture has conditionally agreed to lease a 1.3 million sq. ft. (30- acre) greenhouse facility located on a 55-acre parcel of land in BC from an affiliate of the Partner, with an option to acquire the property. The Joint Venture significantly supplements the Company’s industry-leading production portfolio and positions Canopy Growth with production and distribution facilities from coast to coast across the country.”
“The Joint Venture allows us to expand our operational footprint for greenhouse production while increasing our institutional knowledge of operating large-scale greenhouses,” said Bruce Linton, Chairman and CEO, Canopy Growth. “Our cannabis expertise already operating the largest cannabis greenhouse in the sector combined with experience of our new partner’s extensive large-scale greenhouse production record, is great news for our customers and investors.”
The chart shows 33% piled on for shareholders of the name during the trailing month. The situation may be worth watching. TWMJF has a track record that includes a number of dramatic bounces. In addition, the name has seen a growing influx of trading interest, with the stock’s recent average trading volume running a bit over 240% beyond what we have been seeing over the larger time frame.
At this time, carrying a capital value in the market of $1145.4M, 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%. You can bet we will update this one again as new information comes into view. 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.