06:31:57 EDT Fri 29 Mar 2024
Enter Symbol
or Name
USA
CA



Canopy Growth Corp
Symbol WEED
Shares Issued 350,802,447
Close 2020-06-30 C$ 21.99
Market Cap C$ 7,714,145,810
Recent Sedar Documents

FP/wire say Canopy, rivals hear distress sales loom

2020-06-30 09:18 ET - In the News

Also In the News (C-APHA) Aphria Inc
Also In the News (C-CRON) Cronos Group Inc
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The Financial Post reports in its Tuesday edition that weed stocks have lost about a quarter of their value in the first half of 2020, compounding a 50-per-cent drop in 2019. A Bloomberg dispatch to the Post reports that it has never been a better time to do a distress deal. Entourage Effect Capital director Codie Sanchez says liquidity in the sector has been diminishing since the first quarter of 2019 but now that trend is "on steroids," with private companies' access to capital almost completely dried up. He says: "If you re looking to invest, I'm not sure there's a better time. We're working right now on three really large distressed deals that pre-COVID and the cannabis pullback we would not have been able to do." However, for distressed transactions to really take off, smaller operators will need to become more realistic about the worth of their assets. Mr. Sanchez says: "I'm not sure yet that all cannabis companies really understand what their valuations should be if they're not operating at the highest level or public. I don t think we're quite at the bottom for private companies yet." Eight Capital's Graeme Kreindler says distressed opportunities "will not be in short supply."

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