Canopy Growth Just Made a Big Acquisition: Game-Changer -- or Another Misstep?

Canopy Growth (NASDAQ: CGC) has had a terrible go of it in the past five years. Despite the cannabis industry experiencing regulatory progress in Canada and elsewhere, the company's financial results have been subpar at best, while it has lost significant market value. Could Canopy Growth bounce back? The pot grower recently made an acquisition it hopes will be the spark it needs to turn things around. Let's find out whether there are brighter days ahead for Canopy Growth following this acquisition. Image source: Getty Images.On March 16, Canopy Growth completed the acquisition of MTL Cannabis, a Canadian company. MTL's portfolio of products and brands included pre-rolls, vape cartridges, dried flower, and more. It also operates in Quebec, the second-largest cannabis market in Canada, where Canopy Growth will now have a stronger presence thanks to the acquisition. According to Canopy Growth, this move makes it the leading medical cannabis company in the country by revenue. However, it wasn't a cheap transaction for Canopy Growth. The total equity value of the deal was about $125 million, but Canopy Growth paid for the transaction in a mix of cash and stock and chose to issue new shares to do so.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool