Canopy Growth Could Bring Changes to Cannabis on the Stock Market

 Canadian cannabis company, Canopy Growth, has formed a new holding company called Canopy USA. This new company will allow them to fast track into the U.S. market, enabling them to exercise rights to acquire Acreage, Wana and Jetty, as well as controlling a conditional ownership position of approximately 13.7% in TerrAscend. Canopy Growth has also reduced its cash interest costs, which means it can continue to pursue growth through investments and acquisitions. If Canopy Growth is able to remain on the Nasdaq, it should be viewed as a positive sign. US Cannabis companies are not allowed on the stock exchange while cannabis remains federally illegal. But Canadian based companies are. Jefferies Analyst, Owen Bennett, thinks that other MSOs could do something similar with a holding company, and have ownership via non-voting shares. That’s important because then those MSOs could access institutional capital.