CGC stock is in the green to finish the week after Canopy Growth (TSX:WEED) (NYSE:CGC) provided an update on its rollout of cannabis 2.0 products over the coming weeks.
New Products Driving Gains in CGC Stock
Legalization 2.0 came into effect in Canada on October 17, but due to a 60-day waiting period, while all the necessary paperwork is filed, these products will not go to market until December 16. Canopy has formally unveiled its range of products for the 2.0 market, which includes vape pens, THC-infused chocolates, and ready-to-drink mixed Distilled Cannabis beverage products. Canopy has said that the release of these products will be staged across the early weeks and months of 2020, with CGC stock gaining about 1% following the announcement.
The release of these products will vary across provinces, but first to arrive will be a range of chocolates under the Tweed and Tokyo Smoke labels containing a total of 10 mg of THC each with further varieties arriving on market in late January. Early January will also see the launch of three flavors of infused beverages: Tweed Houndstooth & Soda, Houseplant Grapefruit, and Houseplant Lemon, all of which are 2–2.5 mg THC products. With the infused beverage market set to exceed $2 billion USD in value, this could be a major boost for investors in CGC stock.
Vape Crisis Concerns
Lastly, Canopy Growth says it will not launch its range of vape products until late January at the earliest. The first of these products to arrive on market will include the common 510 thread cartridges, while its single-use JUUL products are expected to launch “thereafter,” with no concrete timeline being given. This news could disappoint holders of CGC stock, with the launch of vape products under particular scrutiny given the escalating vape crisis.
As a result of those growing health concerns, the provinces of Newfoundland & Labrador and Quebec have indefinitely delayed the launch of vape products, with Canopy saying that “the company will continue to work to meet the highest standards of safety, product quality and transparency for consumers.” CGC stock is currently trading for $18.62 in New York and $24.70 in Toronto under the WEED ticker.
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