Canopy Growth has been a sizzling push for many stockholders these days. There is a huge high around cannabis shares through stockholders at present. As Canopy is among the famous names in this world and has gathered devotion from institutional money as well.
Most of the gathering around this stock has come because of its prior histrionic parabolic stock price rise and fall. Nevertheless, this is not certainly one of the peak-risk names in the zone. For investors who are looking to put a little cash in a long-term cannabis holding company, then of course Canopy is not a bad option.
Well, Here is why I think Canopy could have the potential to turn a 2019-like move this year.
Eyes on the U.S. cannabis market
The scene of Federal legalization in the U.S. makes the market the peak jewel cannabis companies will be chasing after. Newly, the rumor is that Canopy could be looking to enter the U.S. in a much bigger way.
Why the speculation?
Well, Canopy is currently raised to $750 million from King Street Capital Management LP. There is now rumor that this sort of an investment raise could only be secured to some kind of U.S. purchase target. However nonentity has yet been confirmed, rumors are sufficient to change stock prices intensely these days. This ensures to be the largest funding sought by this company since it upraised $5 billion from Constellation Brands in 2018. Thus, there is scope to venture today.
If a move occurs, it could be a history-changer for the firm. Like its nobles, Canopy is beholding to target the U.S. in a big way. I am curious as to what will going to happen. While this is still completely a hypothetical growth, it could turn out to be a big deal in the upcoming weeks.
The SAFE Banking Act is back
The SAFE Banking Act’s reestablishment in the U.S. House of Councils has brought a positive response from chief Canadian cannabis companies. It offers a safe port to insurance companies and banks that fund company trading in marijuana.
I consider that this bill’s reinstatement is remarkably favorable for companies who think to plan to grow in the U.S. cannabis market. Besides, with numerous cannabis-friendly supervisory changes undecided, I think the agreement that there is a high chance that the bill will be accepted in the assembly is correct.
Therefore, I think these promoters have the energy to catapult the Canadian cannabis industry in the right way and rapid the wanted growth and expansion in Canada and the United States. Corporations like Canopy Growth are going to be long-term performers and could flourish in this era.