Last week, CGC stock went on a little bit of a rollercoaster ride. It started the week off well—opening on Monday at $46.06 CAD—but dropped steeply come Tuesday to $40.25. By midweek it began paring its losses, clambering back up to close at $44.37 CAD come Friday.
CGC Stock
And here we are on Monday again, where CGC stock looks set to climb a little bit further. This is due to a partnership that the company has officially announced.
Canopy Growth Brink's Partnership
Canopy Growth (NYSE:CGC) (TSX:WEED) has entered into a multi-year agreement with The Brink's Company (NYSE:BCO). Brink's is, of course, a security and protection firm, and the company will soon provide "secure logistics and cash management services" for Canopy Growth’s Canadian and international operations.
According to the Brink's website:
"Brink’s is the world’s largest cash management company with an unmatched footprint and customers in over 100 countries."
It's a partnership that signifies how mighty Canopy Growth has become. Brink's security is synonymous with some of the leading banks in the world; it is a true global leader in its field. This partnership can only add a level of security that investors can get on board with. Will CGC stock reflect this partnership? Maybe.
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Canopy Growth Corp
With a market cap of $11.3 billion USD, Canopy Growth Corp is the biggest Canadian cannabis company in the world. It was the first cannabis company in North America to list on a major American exchange—the NYSE.
The recently legalized adult-use Canadian market will shift over to make room for the edibles market, which is due for legalization in late 2019. And so, on top of being a global supplier of medical marijuana, the company has put itself in a prime position to capitalize on the estimated $146.4 billion recreational cannabis market.
So as the company's "logistics needs become increasingly complex," this partnership will allow Canopy Growth to "scale efficiently." Will that apply to CGC stock as well?
Mark Zekulin, President and Co-CEO of Canopy Growth, said on the partnership:
"Brinks' reputation as a trusted industry leader has been earned by providing reliable secure transport services for over 90 years in Canada. The cannabis industry requires at-scale security solutions in order to continue on a trend of global growth, and Brink’s is uniquely positioned to provide these solutions.”
Where do you think CCG stock will go from here?
Featured Image: Depositphotos/© tatsianama
