{"id":10173,"date":"2024-03-23T06:05:48","date_gmt":"2024-03-23T06:05:48","guid":{"rendered":"https:\/\/topat10.com\/?p=10173"},"modified":"2024-03-23T06:05:48","modified_gmt":"2024-03-23T06:05:48","slug":"canopy-growth-shares-predicted-to-hit-zero-last-year-surge-as-germany-decriminalizes-cannabis","status":"publish","type":"post","link":"https:\/\/topat10.com\/?p=10173","title":{"rendered":"Canopy Growth shares\u2014predicted to hit zero last year\u2014surge as Germany decriminalizes cannabis"},"content":{"rendered":"\n<p>Last summer, the survival of Canopy Growth was in doubt. This week, the Canadian cannabis company watched its stock rise by about 114%.\u00a0<\/p>\n<div>\n<p>On Friday, Germany passed a measure <a href=\"https:\/\/www.politico.eu\/article\/cannabis-possession-cultivation-legal-germany-april\/\" target=\"_blank\" rel=\"noopener\" class=\"sc-47dba8f0-0 iRbseu styledLinkColor \">decriminalizing<\/a> possession and home cultivation of cannabis, starting on April 1. The measure won final passage in the Bundesrat, the upper chamber of Germany\u2019s parliament, after some uncertainty. <\/p>\n<p>\u201cThe removal of narcotic status for cannabis is expected to accelerate growth of the German medical cannabis market,\u201d the company said in a statement.<\/p>\n<p>Canopy, whose stock <a href=\"https:\/\/www.morningstar.com\/news\/marketwatch\/20240322313\/canopy-growths-stock-doubles-to-record-weekly-gain-after-germany-votes-to-legalize-pot\" target=\"_blank\" rel=\"noopener\" class=\"sc-47dba8f0-0 iRbseu styledLinkColor \">rose nearly 36%<\/a> on Friday upon the news, owns the Germany-based vaporizer firm Storz &amp; Bickel, giving it exposure to Europe\u2019s largest economy. It also offers medical cannabis products through its Canopy Medical unit.<\/p>\n<p>The Friday rally added to an earlier one sparked by U.S. President Joe Biden\u2019s State of the Union address on March 7, in which he <a href=\"https:\/\/www.nytimes.com\/2024\/03\/08\/us\/politics\/biden-marijuana-state-of-union.html\" target=\"_blank\" rel=\"noopener\" class=\"sc-47dba8f0-0 iRbseu styledLinkColor \">mentioned<\/a> the rescheduling of cannabis. Vice President Kamala Harris <a href=\"https:\/\/www.politico.com\/news\/2024\/03\/15\/vice-president-to-hold-cannabis-roundtable-00146564\" target=\"_blank\" rel=\"noopener\" class=\"sc-47dba8f0-0 iRbseu styledLinkColor \">followed up by<\/a> saying marijuana\u2019s \u201cabsurd\u201d Schedule I classification\u2014which includes heroin and LSD\u2014should be rescheduled \u201cas soon as possible.\u201d<\/p>\n<p>Other cannabis firms, including Tilray Brands and Cronos, also jumped after the news from Germany.\u00a0<\/p>\n<h2 class=\"wp-block-heading\">Low times<\/h2>\n<p>Last summer, things looked far bleaker for Canopy. In late June, Benchmark analyst Mike Hickey <a href=\"https:\/\/fortune.com\/2023\/06\/26\/cannabis-pot-marijuana-canopy-growth-shares-analyst-zero-price-target\/\" target=\"_self\" rel=\"noopener\" class=\"sc-47dba8f0-0 iRbseu styledLinkColor \">slashed the price target<\/a> on the company to zero, saying it \u201cmay not be able to continue operations and meet its financial obligations.\u201d At the time, Canopy shares had fallen 78% for the year, and the company had acknowledged a going concern risk in its annual report.\u00a0<\/p>\n<p>Benchmark wasn\u2019t alone in warning about Canopy\u2019s prospects. CIBC Capital Markets analyst John Zamparo wrote that the company was \u201cburning cash despite multiple cost-cutting programs,\u201d adding that even the U.S. legalizing marijuana, if it happened, would be \u201cno savior.\u201d\u00a0<\/p>\n<p>In February last year, Canopy <a href=\"https:\/\/fortune.com\/2023\/02\/09\/cannabis-canopy-layoffs-pot-marijuana-industry-jobs-canada-black-market\/\" target=\"_self\" rel=\"noopener\" class=\"sc-47dba8f0-0 iRbseu styledLinkColor \">cut its workforce<\/a> by 60%. CEO David Klein cited competition from Canada\u2019s black market, which he estimated accounted for 40% of the nation\u2019s cannabis sales.<\/p>\n<p>\u201cToday, there are two very different cannabis markets in Canada,\u201d he said at the time. \u201cOne that\u2019s legal, highly taxed and regulated, and one that\u2019s thriving and illicit.\u201d\u00a0<\/p>\n<p>Canada legalized the use of recreational marijuana in 2018, the same year that beer-and-wine giant Constellation <a href=\"https:\/\/fortune.com\/2023\/06\/26\/cannabis-pot-marijuana-canopy-growth-shares-analyst-zero-price-target\/\" target=\"_self\" rel=\"noopener\" class=\"sc-47dba8f0-0 iRbseu styledLinkColor \">spent $3.8 billion<\/a> for a 38% stake in Canopy. That deal sent Canopy\u2019s market valuation soaring, putting it in <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2018-08-22\/with-constellation-deal-canopy-is-emerging-as-the-google-of-pot\" target=\"_blank\" rel=\"noopener\" class=\"sc-47dba8f0-0 iRbseu styledLinkColor \">the same league as<\/a> plane maker Bombardier Inc.\u00a0<\/p>\n<p>Disappointment and uncertainty followed, but Canopy appears to be on steadier ground now. <\/p>\n<\/div>\n<div data-cy=\"subscriptionPlea\">Subscribe to the CFO Daily newsletter to keep up with the trends, issues, and executives shaping corporate finance. <a href=\"https:\/\/www.fortune.com\/newsletters\/cfodaily?&amp;itm_source=fortune&amp;itm_medium=article_tout&amp;itm_campaign=cfo_daily\" target=\"_self\" rel=\"noopener\" class=\"sc-47dba8f0-0 iRbseu styledLinkColor \">Sign up<\/a> for free.<\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>Last summer, the survival of Canopy Growth was in doubt. This week, the Canadian cannabis company watched its stock rise by about 114%.\u00a0 On Friday, Germany passed a measure decriminalizing possession and home cultivation of cannabis, starting on April 1. The measure won final passage in the Bundesrat, the upper chamber of Germany\u2019s parliament, after [&hellip;]<\/p>\n","protected":false},"author":89,"featured_media":10174,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[123],"tags":[],"class_list":["post-10173","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Canopy Growth shares\u2014predicted to hit zero last year\u2014surge as Germany decriminalizes cannabis | Unlock Informed Choices with Us<\/title>\n<meta name=\"description\" content=\"One analyst warned last summer that Canopy &quot;may not be able to continue operations and meet its financial obligations.&quot;\" 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This week, the Canadian cannabis company watched its stock rise by about 114%.\u00a0 On Friday, Germany passed a measure decriminalizing possession and home cultivation of cannabis, starting on April 1. The measure won final passage in the Bundesrat, the upper chamber of Germany\u2019s parliament, after&hellip;","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/topat10.com\/index.php?rest_route=\/wp\/v2\/posts\/10173","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/topat10.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/topat10.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/topat10.com\/index.php?rest_route=\/wp\/v2\/users\/89"}],"replies":[{"embeddable":true,"href":"https:\/\/topat10.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10173"}],"version-history":[{"count":0,"href":"https:\/\/topat10.com\/index.php?rest_route=\/wp\/v2\/posts\/10173\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/topat10.com\/index.php?rest_route=\/wp\/v2\/media\/10174"}],"wp:attachment":[{"href":"https:\/\/topat10.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10173"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/topat10.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10173"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/topat10.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10173"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}