© Provided by The Motley Fool Why Canopy Growth Stock Rose Today
What happened
Shares in Canadian marijuana company Canopy Growth (NASDAQ: CGC) jumped as much as 7% early Tuesday, before settling back to a gain of about 6% as of 11 a.m. EST. The move comes on the heels of a 6% gain in the stock on Monday.
So what
Today, the company announced a new line of CBD-infused beverages for the U.S. market. The company calls the Quatreau brand “a premium ready-to-drink CBD-infused sparkling water.” The launch in the U.S. follows a rollout of Quatreau beverages in Canada last year. It has grown to become Canada’s top-selling ready-to-drink CBD beverage, according to Canopy Growth.
© Getty Images friends drinking CBD-infused beverages laughingThe new drink comes in four flavors, including Cucumber+Mint and Ginger+Lime, and contains U.S. grown hemp-based CBD.
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Now what
Unless the U.S. federal government legalizes marijuana, Canadian pot companies like Canopy Growth will only be able to participate in already legal items like CBD. But a movement toward legalization has been increasing, including over this past weekend, when Virginia became the 16th U.S. state, plus the District of Columbia, to approve marijuana legalization for adult recreational use.
Marketing its new CBD beverage line in the U.S. could help Canopy establish its sales channels and infrastructure in the event that federal legalization occurs. That would be a huge boost to Canadian marijuana growers, and investors in stocks like Canopy Growth.
Howard Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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