APHA - Canopy Growth: Supreme Deal Raised More Questions
- Canopy agreed to acquire a small Canadian licensed producer Supreme for $435M at a 66% premium to market price.
- Canopy shares dipped 5% on the announcement likely because investors were caught off guard by the acquisition of another Canadian asset.
- Canopy has a poor track record in M&A and the deal raised many questions about its ability to execute on growth projects organically.
- We remain Negative on the stock due to its high valuation and a lack of a clear path to profitability in the foreseeable future.
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Canopy Growth: Supreme Deal Raised More Questions