Cannabis stocks are fluctuating today. While Altria Group (NYSE:MO) is trading in the red, as is General Cannabis Corporation (OTCQB:CANN), Canopy Growth (TSX:WEED) (NYSE:CGC) trades in the green in Toronto, apparently still benefitting from last week's acquisition of a UK skincare company.
WEED Stock Still Climbing
On May 22, Canopy Growth announced that it acquired This Works, an established skincare and well-being company. Canopy Growth, an Ontario-area company, said it was acquiring This Works for $73.8 million CAD in an all-cash transaction.
The acquisition “is a key aspect of a multifaceted hemp and CBD strategy as Canopy Growth continues to build upon its vertically-integrated production and marketing platform," said Canopy Growth. "We were struck by how loyal and satisfied the This Works customer base is, which is a testament to the integrity rooted in the company and how confidently they can stand behind their name," added Canopy CEO Bruce Linton.
Based on the initial report of the acquisition, we know that This Works, a London-based company, will be part of Canopy Growth's move into the natural wellness sector. It will also help the company's international presence.
After the news came out, WEED stock shot up, and it appears to be following a similar pattern today.
According to Yahoo Finance, as of 2:00 PM EDT, WEED stock is trading at $60.02; this puts the cannabis stock up 0.54%. CGC stock is currently down at the moment, selling for $44.42, down $0.14 or 0.31%. Given how little CGC is currently down, it's certainly nothing to panic about, and green may be back shortly.
What do you think about Canopy Growth acquiring a skincare company, which offers various skin-care and sleep-aid products? Will this benefit WEED stock in the long-run?
Let us know what you think in the comments below!
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