Canopy Growth

Canopy Growth Corporation is the world's largest legal cannabis company. Founded in 2013 by Bruce Linton in Smiths Falls, Ontario, in a converted former Hershey chocolate factory, it was the first cannabis company to be listed on a major North American stock exchange, Toronto's TSX in July 2016, followed by NASDAQ in 2018.

From Tweed to Canopy Growth: a meteoric rise

«We want to dominate the global cannabis market. This is how Bruce Linton addresses his shareholders from the outset. And they can follow him with their heads down, because since its inception, the company has gone from strength to strength.

The company starts out as Tweed Marijuana Incorporated, one of the first medical cannabis production licensees in Canada in 2014. Under Bruce Linton's leadership, it merged with several competitors and took the name Canopy Growth Corporation in 2015.

In June 2015 , Tweed acquired competitor Bedrocan Canada for $61 million. With this acquisition, Tweed seeks to combine productivity and brand awareness. Bedrocan B.V. has been the only cannabis distributor in the Netherlands for the past ten years. Bedrocan therefore has experience, know-how and a solid reputation in medical cannabis. Added to the various industrial synergies of this merger is the acquisition of a genuine customer base. Tweed and Bedrocan together produce and distribute nearly 25% of medical cannabis in Canada.

The strategy was clear from the outset: occupy the field before recreational legalization, raise massive amounts of capital, acquire competitors and internationalize before the market becomes saturated.

In September 2015 , Bruce Linton and Tweed shareholders approved the creation of a parent company linking the two entities: Canopy Growth was born. This parent entity is listed on the Toronto Stock Exchange. The value of the company's shares almost quadrupled in just one year. A share was worth around 2,50$ at the start of 2016, and now stands at 9,60$, peaking at 12$ after the various legalizations in november. On November 30, Canopy Growth offered to buy out its competitor Mettrum in the amount of 430 million. A tempting offer that would make Canopy Growth the first cannabis-only company worth over $1 billion.

Through Mettrum, Canopy Growth is also gaining visibility internationally and in the hemp industry. Mettrum was chosen by the Australian government to distribute medical cannabis. At the same time, Canopy subsidiary Bedrocan Canada is setting up in Brazil in partnership with local laboratory PhytoLab: »We're delighted to be arriving in a country with over 200 million inhabitants». Start of operations early 2017. Tweed has acquired Medcann, the company that handles the distribution of medical cannabis in Germany. Tweed has also chosen Snoop Dogg as its headliner. His Leaf brand of cannabis will be distributed in Canada for at least three years under the Tweed brand.

In March 2017, Canopy Growth joins the S&P/TSX Composite Index - a first for a cannabis company. In 2018, Constellation Brands, the American alcoholic beverage giant that owns Corona and Robert Mondavi beers, invests C$5 billion to take a 38% stake. It's the largest-ever investment in a cannabis company, and a strong signal to global financial markets about the legitimacy of the sector.

Canadian legalization and the difficulties

When Canada legalized recreational cannabis in October 2018, Canopy Growth was in pole position. But the reality of the market is harsher than anticipated: sales stagnate in the face of a lack of authorized outlets, losses mount, and Constellation Brands loses patience.

In July 2019, the Board of Directors ousts Bruce Linton, the company's founder. The company enters a long period of restructuring (downsizing, site closures, asset disposals) in an attempt to achieve profitability.

Brands and catalog

Canopy Growth operates under several brands, depending on the market and segment:

Tweed is Canada's historic consumer brand: accessible recreational cannabis, positioned in the entry and mid-range markets.

Storz & Bickel is the German premium vaporizer brand acquired in 2018, maker of Volcano and Mighty, two of the industry's most respected vaporizers.

Tokyo Smoke is the urban lifestyle brand developed for Canada's big-city markets.

BioSteel, a sports drinks brand acquired in 2019, since resold as part of the restructuring.

Canopy USA: the American bet

Anticipating federal legalization in the United States, Canopy Growth has developed a dedicated structure, Canopy USA, to prepare its entry into the American market via conditional acquisition agreements with multi-state operators (MSOs). Federal legalization is slow in coming, but we've taken the necessary steps to respond rapidly when the time comes.

Canopy Growth is listed on the TSX under the symbol WEED and on the NASDAQ under the symbol CGC.