Martha Stewart and marijuana grower Canopy Growth (CGC) announced a business partnership, with the lifestyle personality joining the company in an advisory role to assist with developing and positioning hemp-derived CBD products. The partnership also includes Sequential Brands (SQBG), a consumer brands company that works with Stewart.
MARTHA STEWART IN ADVISORY ROLE: Canopy Growth and Sequential Brands Group announced that Martha Stewart has joined the company in an advisory role to assist with developing and positioning a broad new line of product offerings across multiple categories. With several clinical trials underway, Canopy Growth will be leaning on Martha's knowledge of consumer products while exploring the effectiveness of CBD and other cannabinoids as they relate to improving the lives of both humans and animals. As previously reported in January 2019, Canopy Growth has developed diverse product offerings specific to hemp-derived CBD and the company looks forward to working closely with Martha Stewart as they further develop and introduce these products to market in the future. Canopy Growth previously reported that it will invest between $100M-$150M in a hemp industrial park in New York State with an intended purpose of being the company's first hemp facility in the U.S.
CONSTELLATION INVESTS IN CANOPY GROWTH: Canopy's partnership with Martha Stewart comes only months after the Canadian pot company and Constellation Brands (STZ, STZ.B) announced the closing of the latter's $4B investment in the Canadian pot grower, which was previously announced on August 15. The transaction was approved by an overwhelming majority of Canopy Growth shareholders and has been granted all required regulatory approvals, including by the Canadian government under the Investment Canada Act. With this investment, Constellation Brands increased its ownership interest in Canopy Growth to approximately 37% of outstanding common shares and appointed two members of its executive team, as well as two independent directors, to the Board of Directors of Canopy Growth.
WHAT'S NOTABLE: New Jersey Democrat Senator Cory Booker has introduced a new version of his Marijuana Justice Act, which seeks to legalize marijuana, and was joined by co-sponsors Elizabeth Warren, Kirsten Gillibrand, Kamala Harris and Bernie Sanders, all of whom are also seeking a nomination as a presidential candidate, The Washington Post's David Weigel reported. In December, the U.S. farm bill legalized CBD derived from hemp under certain circumstances as cannabidiol soars in popularity. However, the Food and Drug Administration has reiterated that any CBD product market as having therapeutic benefits must be approved for its intended use. Across the border, cannabis is legal but Canada has not yet approved its use in food and beverage form. Other publicly traded companies in the cannabis space include Aphria (APHA), Aurora Cannabis (ACB), CV Sciences (CVSI), CannTrust Holdings (CNTTF), Cronos Group (CRON), General Cannabis (CANN), India Globalization Capital (IGC), MediPharm Labs (MLCPF) and Tilray (TLRY).
PRICE ACTION: In morning trading, shares of Canopy Growth have jumped over 4% to $47.60.
Canopy Growth
+2.12 (+4.64%)
Constellation Brands
-0.1 (-0.06%)
Constellation Brands; also tag STZ
+ (+0.00%)
APHA
+
Aurora Cannabis
+0.075 (+1.00%)
CV Sciences
+ (+0.00%)
CNTTF
+
Cronos Group
+0.79 (+3.70%)
Trees Corporation
+ (+0.00%)
IGC Pharma
+0.475 (+22.14%)
Changed to MEDIF
+ (+0.00%)
Tilray
+3.01 (+3.79%)
Sequential Brands
+0.245 (+19.76%)