Cannabis stocks have been on the rise following the legalization of recreational use of marijuana in Canada. For instance, CGC stock was under $2 per share in 2015, and it has remarkably increased to date. Canada's Canopy Growth (TSX:WEED) (NYSE:CGC) sold for $55 CAD per share this week, positioning the company as a leader in the marijuana industry.
Canopy has made tremendous achievement since 2014 when it became the first marijuana company to trade publicly in North America. The company has a market capitalization of approximately $20 billion now. With these remarkable achievements, it's time for investors to consider CGC stock in their portfolio.
The company is focused on expanding its business and market reach so that it can establish itself as a world leader in the marijuana industry. The legalization of recreational use of marijuana in Canada has encouraged the trend to be adopted in 33 states in the US, with a number of them, such as California, allowing recreational use of marijuana.
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Expanding to Capitalize on Opportunities
Canopy Growth has been working on a number of initiatives that will increase its market access and distribution footprint. The company has partnered with Alimentation Couche-Tard for the opening of a store in Ontario. More pot stores are likely to open in Ontario to add to the current retail footprint of over 28 stores in Manitoba, Saskatchewan, and Newfoundland.
The company wants to scale up its production by adding 1.3 million square feet to its licensed facility and by adding more patent applications. This will put the company in a strong economic position in the marijuana industry. Coupled with changing perceptions regarding marijuana use and the legalization of recreational marijuana, CGC stock is considered one of the premier stocks for investors looking to venture into the industry.
CGC stock was the first cannabis stock to receive a commercial growers license in Canada to supply medical marijuana to medical users in the nation. Canopy Growth performed well under the leadership of Linton. He bet that every investor would want to own a piece of the cannabis industry.
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