Canopy Growth Corp WEED

Having Burned Through the Constellation Investment, Canopy Growth Is at Risk for More Dilution

Canopy Growth grows and sells cannabis products primarily in Canada, which accounts for roughly 50% of sales. Unfortunately, the Canadian market is overloaded with too many licensed producers, leading to tough price competition and a stubbornly robust illicit market, so Canopy has yet to reach profitability. We forecast low-single-digit growth over the next decade for the Canadian market, driven by the conversion of illicit consumers into the legal market.