Canopy Growth Corp (NYSE: CGC) is having a strong start to the trading session this morning, and for good reason. The company announced that it has entered into an agreement to acquire assets. Of course, the news excited investors, sending the stock on a run for the top. Today, we’ll talk about:
- The acquisition news;
- what we’re seeing from CGC stock as a result; and
- what we’ll be watching for ahead.
CGC Announces Acquisition News
As mentioned above, Canopy Growth Corporation is having a strong start to the trading session this morning after announcing acquisition news. In a press release issued early this morning, the company said that it has entered into an agreement to acquire the assets of ebbu, Inc. ebbu is a hemp research leader.
In the release, CGC said that the transaction will compliment and accelerate multiple core verticals operating under its group of companies. The IP and R&D advancements made by ebbu will apply directly to the company’s hemp and THC-rich cannabis genetic breeding program as well as its cannabis-infused beverage capabilities. The company also said that the IP portfolio will contribute to the clinical formulations program the company’s subsidiary Canopy Health Innovations is developing. In a statement, Mark Zekulin, Co-CEO and President at CGC, had the following to offer:
Beyond the technological edge this transaction provides, we are pursuing this acquisition because Canopy shares ebbu’s core ethos of building consumer trust… We collectively believe consumer trust is achieved by driving the scientific agenda needed to build predictable, repeatable outcomes and layering on brand power.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of Canopy Growth, the news proved to be positive. After all, the acquisition will help the company move in leaps and bounds with regard to various areas of its business. So, it comes as no surprise that excited investors are pushing the stock upward in the market this morning. At the moment (7:59), CGC is trading at $51.20 per share after a gain of $1.40 per share or 2.81% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on CGC. In particular, we’re interested in following the story to see how the acquisition of this IP will help to continue the advancementsbeing made by the company. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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