CGC stock is in the green on Monday after Canopy Growth (TSX:WEED) (NYSE:CGC) announced that it has secured a license for its 150,000 sq. ft. beverage facility located at the company’s headquarters in Smiths Falls, Ontario.
Canopy’s Cannabis 2.0 Portfolio
The license is the final such approval Canopy Growth needed for its cannabis 2.0 portfolio, and the facility will begin producing infused beverages immediately. The beverage facility adds to an already extensive range of production facilities at the Canopy headquarters, which includes a distribution center, an automated manufacturing facility, a state-of-the-art bean-to-bar chocolate factory, and a visitor center. CGC shares are up 1.6% to $18.70 following the announcement.
Mark Zekulin, current CEO of Canopy Growth, spoke of how the final licensing approval cements years of hard work at the world’s largest cannabis company and was quick to sing the praises of parent company Constellation Brands (NYSE:STZ), which ousted former CEO Bruce Linton earlier in the year. The cannabis beverage market is expected to be worth more than $2,050.44 million USD by 2026, and CGC stock is in a prime position to take advantage of that exploding market with its extensive range of products.
CGC Stock Opportunity?
“Cannabis beverages have the potential to introduce an entirely different demographic to the cannabis category by presenting them with a familiar product format and an onset time akin to beverage alcohol,” explained Zekulin. Eleven beverages, all based on the company’s unique Distilled Cannabis process, will be produced in the Smiths Falls facility during the first wave of production, with more added throughout the year. With CGC stock tanking in 2019, the new license could finally provide a catalyst for growth in 2020.
Last week, CGC stock slumped to its lowest point in two years after hugely disappointing quarterly results. However, some analysts believe that the stock may have bottomed out and now represents an opportunity for investors. Since then, CGC shares have gained over 30%, and the imminent launch of Canopy Growth’s 2.0 portfolio could be a sign of more good times ahead.
Featured Image: Canva