Canopy Growth to launch cannabis company with rapper Drake; shares up 2%

TORONTO ON- JUNE 17 Rapper and Toronto Raptors Global Ambassador Drake speaks during the Toronto Raptors Championship victory parade & rally

TORONTO ON- JUNE 17 Rapper and Toronto Raptors Global Ambassador Drake speaks during the Toronto Raptors Championship victory parade & rally

Canopy Growth has established partnerships with leading sector names including cannabis icons Snoop Dogg and Seth Rogen, breeding legends DNA Genetics and Green House Seeds, and Fortune 500 alcohol leader Constellation Brands, to name but a few. The company has a debt-to-equity ratio of 0.13, a current ratio of 10.37 and a quick ratio of 9.03. The firm has a market capitalization of $9.12 billion and a price-to-earnings ratio of -4.23. The rating was upgraded by Seaport Global to "Buy" on Monday, August 26. Bank of America downgraded shares of Canopy Growth from a "buy" rating to a "neutral" rating and set a $27.00 price objective for the company.in a research note on Friday, September 27th. Canopy Growth had a negative return on equity of 13.01% and a negative net margin of 647.47%. Canopy will own the remaining 40 per cent of the subsidiary. Tradewinds Capital Management LLC grew its position in shares of Canopy Growth by 41.9% during the 2nd quarter. The business had revenue of $67.65 million for the quarter, compared to analysts' expectations of $85.97 million. TCI Wealth Advisors Inc. raised its position in shares of Canopy Growth by 653.6% in the third quarter. Four equities research analysts have rated the stock with a hold rating and one has given a buy rating to the company.

Following the release of its second quarter fiscal 2020 financial results, Canopy Growth will host a conference call and audio webcast with Mark Zekulin, CEO, Mike Lee, EVP & CFO, and Rade Kovacevic, President, at 8:30 AM Eastern Time on November 14, 2019. Morgan Stanley now owns 2,043,350 shares of the marijuana producer's stock worth $82,368,000 after acquiring an additional 82,122 shares during the period.

Hedge funds have recently modified their holdings of the company. After having $-0.23 EPS previously, Canopy Growth Corporation's analysts see 17.39 % EPS growth. The rapper has teamed up with Canopy Growth to distribute both recreational and medicinal Cannabis products.

While it's hard to predict what percentage of the inventory is dried marijuana versus plain trimmings from plants that can be used for "extract products" such as oils and concentrates.

Fans of Drake will not be surprised by this move, as the artist regularly raps about cannabis on hit songs ("Back home smoking legal") and has shown a penchant for opening mogul-solidifying consumer brands like Virginia Black whisky, worldwide clothing brand October's Very Own, and record label OVO Sound.