Shares jump over Acquisition news
Canopy Rivers Inc (OTCMKTS:CNPOF) investors responded enthusiastically to the company’s $54 million acquisition of London-based Skin care and natural wellness brand- This Works. The company’s stock jumped to $3.45 during the Wednesday, May 22, 2019 session and has since receded to $3.25 as of this writing.
Canopy Group the industry’s inarguable crème de la crème by market cap is looking to further augment its portfolio through the acquisition. The company has been developing a “vertically-integrated production and marketing platform” and has billions worth of assets under its belt thus far. Since its inception Canopy Group has executed multiple acquisitions and strategic partnership agreements including a $4 billion deal with the Constellation Brands, Inc. (NYSE: STZ).
Having cemented its position in the Canadian cannabis market, Canopy Group is now going international with focus in the potentially lucrative U.S. and European markets. This Work’s acquisition will grant Canopy Group access into the vast European market estimated at billions of dollars.
Entry to Europe
This Works prides a successful product line that has enabled it to create a rich distribution network across Europe not to mention millions of loyal customers. The acquisition is part of the company’s plan to diversify its business to other related fields as well as extend its coverage to international markets as mentioned earlier. Through the acquisition, Canopy Growth can launch its CBD-based brands in Europe as well as work with This Work’s development team to produce high quality CBD-infused beauty, wellness and sleep-enhancement products. CBD has been talked to have multiple wellness benefits although not much scientific research has been devoted to this area to back the claims.
Canopy Group has retained This Work’s CEO, Dr. Anna Persaud after the acquisition to run the company’s business operations. Dr. Persaud has overseen the development of several successful products since joining the company in 2009 and she’s better suited to run its operations after the acquisition.
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