Cannabis stocks rally as Canopy secures future foothold in the U.S.

Cannabis stocks rallied on Thursday, boosted by the news that the biggest company in the sector by market cap has bought the rights to acquire a U.S. multistate operator as soon as the federal ban on cannabis has been lifted.

Canopy shares soared more than 8% after it confirmed the deal, which MarketWatch reported on late Wednesday. Once the rights have been exercised, the deal will be valued at $3.4 billion, a 41.7% premium over the 30-day volume weighted average price of the Acreage subordinate voting shares on the CSE ending April 16, Canopy said in a statement.

Canopy would also have to give up its U.S. listing, which was cross-listed from the TSX, and instead look to the Canadian Securities Exchange and over-the-counter trading in the U.S., as publicly-listed U.S. companies do. The deal also shows that Canopy is driving real value from its Constellation investment, which is key given the difficulty facing cannabis companies in tapping the capital markets, he wrote. Bennett has a hold rating on Canopy stock.

“The company is also among the best connected politically, with the Board of Directors including former Speaker of the House John Boehner and a current candidate for the Republican nomination for President of the United States,” they wrote in a note. That candidate is William Weld, the Republican former governor of Massachusetts, who has confirmed his plan to challenge President Donald Trump in the 2020 primary.“These relationships will likely prove helpful in pushing for a change in U.S.

For more, see now: Greenlane IPO: 5 things to know about the closest thing to a U.S. cannabis company to go public on NasdaqElsewhere in the sector, Cronos Group Inc. CRON, +2.26% CRON, +2.35% was up 3.5%, Aurora Cannabis Inc. ACB, +1.23% ACB, +1.09% was up 1.0%, and Tilray Inc. TLRY, -2.45% was down 1.0%.

United Kingdom United Kingdom Latest News, United Kingdom United Kingdom Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Canopy Growth stock climbs more than 10% after report of potential merger with U.S. pot companyCanopy Growth Corp. shares spiked more than 10% higher in after-hours trading Wednesday after reports that it is preparing to acquire U.S. pot producer... I’ve been holding patiently and adding for everyone to realize this 😊🤯
Source: MarketWatch - 🏆 3. / 97 Read more »

Canopy Growth nearing deal to buy U.S.-based pot company Acreage Holdings: sourceCanadian marijuana producer Canopy Growth Corp is close to a deal to buy U.S.-ba... Deal to buy rights?
Source: Reuters - 🏆 2. / 97 Read more »

Canopy Growth stock climbs more than 10% after report of potential merger with U.S. pot companyCanopy Growth Corp. shares spiked more than 10% higher in after-hours trading Wednesday after reports that it is preparing to acquire U.S. pot producer... I’ve been holding patiently and adding for everyone to realize this 😊🤯
Source: MarketWatch - 🏆 3. / 97 Read more »

Cannabis stocks rally after 3 surveys find Americans increasingly favor legalizationCannabis stocks rose across the board on Tuesday, as three separate surveys found Americans are increasingly in favor of legalization, demonstrating a major...
Source: MarketWatch - 🏆 3. / 97 Read more »

Canopy Growth nearing deal to buy U.S.-based pot company Acreage Holdings: sourceCanadian marijuana producer Canopy Growth Corp is close to a deal to buy U.S.-ba... Deal to buy rights?
Source: Reuters - 🏆 2. / 97 Read more »