What's Going On With Canopy Growth Stock?

Canopy Growth Corp CGC shares are trading lower. The company on Monday announced the results of its special meeting of shareholders.

What Happened: Canopy Growth announced that its shareholders approved the creation of a new class of Canopy Growth stock at its special meeting of shareholders on Friday. 95.56% of votes cast were in favor of the proposal.

The overwhelming approval authorizes the issuance of an unlimited number of a new class of non-voting and non-participating exchangeable shares in the capital of Canopy Growth. The company also noted that the new class of exchangeable shares will accelerate Canopy Growth’s entry into the U.S. THC market.

“With this successful shareholder vote complete, our Canopy USA strategy is advancing and is poised to make Canopy the first and only U.S. listed cannabis company offering shareholders unique exposure to the rapid growth of the U.S. cannabis market,” said David Klein, CEO of Canopy Growth.

“Canopy USA can now move quickly to acquire its U.S. assets in Wana, Jetty, and Acreage, and we expect Canopy Growth to begin highlighting Canopy USA’s financial performance to our shareholders later this year.”

Potential benefits of Canopy’s USA strategy include a fast tracked entry into the world’s largest and fast growth cannabis market, the establishment of a new brand focused portfolio and financial benefits via revenue and cost synergies within Canopy USA.

“Buoyed by recent comments from the President and the Vice-President, Canopy Growth continues to be cautiously optimistic that cannabis will be moved to Schedule III in the near-term. Following this, we expect an immediate enhancement to the cashflow of Wana, Jetty, and Acreage resulting from the removal of the prohibition on business deductions in Section 280 which we expect to help power their growth,” Klein added.

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CGC Price Action: Canopy Growth shares are up approximately 42% since the start of the year. The stock was down 6.86% at $7.26 at the time of publication, according to Benzinga Pro.

Photo: Wally Crawfish from Pixabay.