Canopy Growth Corp., the largest Canadian pot producer by market value, had about $2 billion in cash at the end of June. The strong balance sheet allows it to pursue acquisitions and the current market conditions would provide frequent opportunities, a company spokesman said. Canopy is backed by Corona beer maker Constellation Brands Inc.Since its peak in August 2018 in the run-up to Canada’s legalization of recreational weed, cannabis stocks tracker MJ ETF has dropped 70 per cent.
“You’ll still see a lot of the same funding sources but they’re going to be much more diligent and cautious with their dollar,” said Avis Bulbulyan, CEO at cannabis consultancy Siva Enterprises. However, it could be another quarter before Canadian companies start making deals as they are still cleaning up their balance sheets, said Stuart Titus, CEO of Medical Marijuana Inc.