Why Canopy And Tilray Stocks Are Down
Shadd Dales, millennial entrepreneur Andrew Varrell, and financial writer Benjamin A. Smith team up in our latest Trade to Black podcast. Today, we dive deeper into cannabis company Canopy Growth and its continuously sinking stock performance. We also touch on Tilray’s market status. Both Canopy and Tilray stocks are down, to the alarm of some investors.
Canopy Growth (NASDAQ: CGC) was a leading pioneer in the cannabis industry in Canada and a bit of a darling in the space. In early 2021, the stock was still trading for over $40 USD per share. They even had plans to try to gain a foothold in the bigger market of the United States.
Fast forwarding to 2023, Canopy continues to post heavy losses in its home country and their share price has been beaten down to a penny stock. How did the company manage to fall down this deep? What does this say about the overall health of the industry? Is it a sign that their era is ending, or are we just in a place where we need regulations to come in and save the space? We’ve got some thoughts.
Tilray Brands Inc (TSE: TLRY) is another cannabis goods company we’ve also been keeping our eyes on. Investors may remember that they announced a merger with Aphria in 2020. How are they doing in this market? They recently announced $150 million convertible senior notes and market bi-programs, and their stock took a significant hit as a result. Will this be their downfall? It definitely reflects their negative cash position which is already a pain point to investors. We’ll talk about how management leadership affects a company’s future.
Despite Canopy and Tilray being beaten down, it’s not all bad news. The rising success of Numinus and their project rollouts is worth looking at. They have started with trainings and certifications on psychedelic-assisted therapies and treatments. What could be the company’s outlook moving forward as it partnered with MAPS? Will they become the most awaited catalyst in the psychedelic industry? Here’s the latest.
