Cannabis Corner: Canopy takes big steps to spur your gains

Article Excerpt

Most cannabis producers continue to struggle with a number of challenges. They include the slow retail-store rollouts in Ontario, which has kept the black market thriving. As well, there remains an oversupply situation heightened by the challenge of pinpointing consumer tastes. Canopy Growth has a deep-pocketed partner in Constellation Brands, which holds 38% interest in the company. That firm also has the option to raise that stake to over 50%. Constellation is now undertaking a number of measures to correct the missteps of Canopy Growth’s previous management. Constellation’s former chief financial officer, David Klein, is Canopy’s new CEO. He comes after the July 2019 departure of co-founder Bruce Linton. Canopy is now laying off 500 workers and shutting down two of its biggest greenhouses in B.C. That’s a 55% cut in the company’s overall growing capacity. It has also called off plans to open another greenhouse in Niagara-on-the-Lake. These moves, plus plans to grow more cannabis outdoors to cut costs, should put Canopy further…

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