Article by Sunny Freeman, Financial Post
Canopy Growth Corp. is Canada’s first marijuana “unicorn” after reaching a billion-dollar valuation Friday as part of an industry-wide rally buoyed by this week’s legalization push in eight U.S. states.
Canopy, a medical and recreational focused marijuana company, has seen its stock rise 386 per cent in the past year. Its market capitalization hit $1.15 billion Friday morning, giving it the elusive “unicorn” status reserved for startups that reach the billion dollar mark.
Publicly-traded Canadian marijuana companies, including large players like Aphria Inc. and Mettrum Health Corp., are now valued at a combined total of more than $3 billion, after massive growth in their share values in the past few months.
Canopy Growth’s stock reached new highs this week after eight U.S. states voted to legalize either recreational or medical marijuana during Tuesday’s election. It was up another five per cent Friday, hovering near $10 a share.
Canopy’s CEO Bruce Linton said the milestone valuation gives the company the capital to scale up further to prepare for a Canadian recreational market, which is expected to open some time in 2018.
Tweed, the company’s subsidiary best positioned to operate in the recreational market, plans to double its production at the facility south of Ottawa by the end of the year.