In partnership with rapper Snoop Dogg’s Leafs brand, Canopy Growth is ready to roll out three new strains of marijuana across Canada by the end of the month. That is exciting news for the recreational marijuana user in Canada, but what does it mean for the company’s earnings? The answer decides whether investors should expect significant share price gains . This company is one of the only producers turning a profit at $427,000 and $1.95 million in the fourth quarter last year and the first quarter, respectively. Aurora Cannabis achieved two major milestones in the past 30 days that one would expect of a young growth stock. Green Rush First, the company’s shares were moved to the Toronto Stock Exchange’s Venture Exchange. This milestone reflects “remarkably rapid operational and commercial progress,” Chief Executive Terry Booth said. Second, the company said this month that it will issue up to $25 million in convertible debt. This offering makes Aurora Cannabis one of the best capitalized companies in the cannabis sector, Booth said.
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Despite these soaring sales, though, Canopy Growth stock has fallen around 10% so far in 2017. Granted, that’s relatively insignificant when you consider that the share price is still up over 190% since the beginning of last year. However, investors should know why the stock isn’t growing as much as its marijuana crops and revenue are. One reason is that Canopy Growth’s bottom-line performance doesn’t look as good. The company lost nearly $22 million in its fiscal fourth quarter compared to a loss of $5 million in the prior-year period. One reason behind this bigger loss was Canopy Growth’s acquisitions activity. However, it is also spending a lot more money than in the past on sales, marketing, and administrative functions. In addition, the Canadian government announced in May that it plans to make significant changes to the medical Marijuana Stocks cannabis program . Those changes include authorizing more providers to supply medical marijuana in the country.
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