CGC stock is on the move once again. Canopy Growth Corp (TSX:WEED) (NYSE:CGC) has announced a strategic acquisition of Spanish brand Cafina in its bid to take over the lucrative European market. On the news, shares are climbing, selling for $52.03 USD and up 4.25% at the time of writing.
This is Canopy's second acquisition in a short period of time. Is the company literally taking over the world?
CGC Stock Exploded on Acreage Deal
Canopy Growth is one of the best performing marijuana stocks in 2019.
Performance has been so good, in fact, that CGC stock has nearly doubled its value in 2019 already.
Most recently, the company announced a massive $3.4 billion acquisition of the US's medical cannabis company Acreage Holdings (OTCQX:ACRGF). The deal pushed CGC stock through the roof as it cemented Canopy's entrance into the US market.
Though this deal doesn't go into effect until the US legalizes cannabis at the federal level, the company has a gateway and then some; Acreage is a massive US multi-state operator with a diverse portfolio spanning 14 states.
The American market is huge for cannabis brands because, simply, it is a far bigger marketplace than Canada. For example, the California market alone has greater revenue potential than all of Canada combined.
CGC Stock in Europe
And this is also why Canopy's acquisition of Cafina is really exciting. Because demand for CBD and medical cannabis in Europe is even bigger than in America.
Extending its presence in Spain, “one of the most ideal growing regions in the world,” Canopy Growth is well positioned to capitalize on Europe: It already has a growing field in Denmark, processing labs in Germany, and a licensed partner cultivating cannabis flower in Spain.
The Cafina acquisition should complement its current operations as it actively spreads its footprint across the continent.
CGC Stock and Cafina
Cafina is an Alicante-based startup that researches industrial use of hemp and marijuana. Operating out of a 1,600 sq ft greenhouse, it is one of only three companies in Spain granted the authority to cultivate, distribute, and export cannabis containing more than 0.2% of tetrahydrocannabinol (THC) for medicinal and research purposes.
As stated, CGC stock is on the rise, up 4.25% and selling for $52.03 USD on the NYSE.
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