This Week in Cannabis Investing: Canopy Growth Slims Down

Plus, SAFE Plus finds support, Biden makes a big move and M&A activity in the CBD drink market.

marijuana and CBD oils
(Image credit: Getty Images)

The first generation of cannabis operators in Canada, including Canopy Growth (CGC, $3.75), made a number of unreasonable and costly investments during a frothy period of cannabis capital markets. 

Canada's so-called "Green Rush" was mischaracterized and most of those transactions failed to provide accretive value. We're continuing to see significant write-downs and shuttering as a result of these hasty decisions. Now that the bluster has given way, Canadian companies are adjusting their expectations. 

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Morgan Paxhia
Contributing Writer

Morgan Paxhia is Managing Director and Co-Founder of Poseidon Investment Management. With over 10 years experience in investing and finance, Morgan has developed a deep understanding of individual company analysis, portfolio construction, and risk mitigation. This content is not intended to provide any investment, financial, legal, regulatory, accounting, tax or similar advice, and nothing should be construed as a recommendation by Poseidon Investment Management, LLC, its affiliates, or any third party, to acquire or dispose of any investment or security, or to engage in any investment strategy or transaction. An investment in any strategy involves a high degree of risk and there is always the possibility of loss, including the loss of principal. This content should not be considered as an offer or solicitation to purchase or sell securities or other services. Any of the securities identified and described herein are for illustrative purposes only.  Their selection was based upon nonperformance-based objective criteria. The content presented is believed to be factual and up-to-date, but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. Past performance is not indicative of future results.