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Canopy Growth Corp (TSE:WEED) (OTCMKTS:TWMJF) Resumes Its Climb

Canopy Growth Corp (TSE:WEED) (OTCMKTS:TWMJF) Resumes Its Climb
Written by
Alex Carlson
Published on
February 13, 2017
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InsidrFinancial

Canopy Growth Corp (TSX:WEED) (OTCMKTS:TWMJF) has been a top pick here at Insider Financial for quite some time. The company touches all facets of the cannabis industry as CEO Bruce Linton has turned Canopy into Canada's top cannabis player. Now that the company has the new ticker symbol WEED, investors can now legally buy and sell WEED right on Bay Street. We're now only a few months away from Canadian consumers being able to buy recreational marijuana as well. With strong demand for WEED, Canopy Growth Corp remains a top pick for cannabis investors.Last month, Canopy completed the acquisition of Mettrum Health Corp, which we said made Canopy a cannabis giant. This further diversified the company to go along with its other core brands, Tweed and Bedrocan. These three brands position Canopy better than any other cannabis player to capitalize on the Canadian cannabis market. Estimates for recreational legalization put the Canadian market at 3.8 million recreational users generating over C$6 billion in sales.Recreational legalization got a step closer in December after the Canadian Federal Task Force issued its recommendations on how to legalize recreational marijuana use. The proposals include a minimum purchase age of 18, federal oversight on production, provincial governments charged with retail distribution and maintaining criminal offenses for illicit production and trafficking. The Task Force was led by Canada’s former attorney general and offered more than 80 recommendations on how Canada could become the largest developed-world country to legalize marijuana.Medical cannabis research is one area where Canopy Growth is getting stronger. Canopy established Canopy Health Innovations to research and develop clinically ready cannabis drug formulations and delivery systems for both human and/or animal patients targeting unmet medical needs in traditional pharmaceutical markets that could be disrupted by cannabis-based options. Canopy Growth retains the right of first refusal to commercialize all resulting intellectual property developed by CHI globally.The company just announced that Canopy Health Innovations entered into a 3-year consulting agreement with EPIC Consulting Inc., the Quebec-based consulting firm of Dr. Mark Ware. He has been conducting medical cannabis research in Canada for more than 19 years and brings considerable expertise in the design of high quality clinical studies to evaluate the safety and efficacy of cannabinoids. His guidance will be instrumental for CHI research planning. Canopy Health Innovations President Marc Wayne said:

"Canadian policy and regulations around cannabis are very progressive when compared to other jurisdictions around the world. We have a unique opportunity here in Canada to study cannabis and develop products that will change the world. Bringing Dr. Ware in at this exciting moment to consult on our clinical research strategy is an important step towards our vision of bringing validated cannabis medicines to market as quickly as possible."

Besides Canopy Health Innovations, Canopy also has a 33% stake in CannScience, a R&D biopharmaceutical company established to conduct research and development of therapeutic products based on the extracts from medical cannabis. Canopy acquired its stake in CannScience after the October 2015 acquisition of MedCannAccess. CannScience is developing proprietary technologies and owns know-how related to the chemistry and pharmacology of medicinal cannabis. CannScience is working on integrating various medical devices and drug delivery technologies for the delivery of medications for various patient populations.Currently trading with a market cap of C$1.97 billion, Canopy Growth Corp still has further room to run with a number of catalysts set to happen in 2017. While the most talked about will be recreational marijuana legalization in Canada, we expect there to be major news coming out of Canopy's forays into medical cannabis research. A groundbreaking development would be just another spark to keep the momentum going.For us at Insider Financial, the next catalyst will be Canopy's Q3 2017 financial results. They will be released on February 14 and CEO Bruce Linton and CFO Tim Saunders will be holding a conference call at 8:30 am EDT the same day. We will be on that call and updating our subscribers with our take and analysis. For the latest updates on WEED/TWMJF, sign up below!Disclosure: We have no position in WEED/TWMJF and have not been compensated for this article.

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