This Week in Cannabis Investing: Legalization is Popular Ahead of Midterms

Surveys show support for legalization, Constellation changes up Canopy's US operations, and more.

A close up of the marijuana farm industry. Beautiful macro and micro shots. Green house, outdoor, indoor plants. Harvesting cannabis, planting weed and more.
(Image credit: Getty Images)

This week, Canopy Growth Corporation made another major move. The struggling Canadian cannabis company announced the creation of Canopy USA, a new holding company which will consolidate its U.S. assets, reduce costs and clarify their entry into the U.S. market. Previously, Canopy had paid significant sums to acquire Wana Brands, Jetty, and stakes in Acreage and TerrAscend under conditional ownership terms that have not been met. 

At the same time, its stakeholder Constellation Brands, the largest beer import company in the U.S., announced it will convert its existing common shares in Canopy into new exchangeable shares. 

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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.