Canopy Growth's stock sustains rally as it draws praise for BioSteel exit

By Steve Gelsi

Canadian cannabis company Canopy Growth adds another double-digit percentage gains as cannabis stocks gain traction

Canopy Growth Corp.'s stock was rallying by about 12% on Friday to finish out an eventful week for the cannabis company, amid overall optimism in the sector.

TD Cowen analyst Vivien Azer said Canopy Growth's (WEED.T) move to file bankruptcy for its BioSteel sports drink unit will narrow the gap for the company's adjusted losses moving forward.

"The improved profitability outlook is encouraging," Azer said.

The stock is up 51% in the past five sessions despite cooling off earlier this week.

Cannabis stocks were on the rise overall on Friday, on fresh signs that the SAFE Banking cannabis bill could come to a vote in a Senate committee later this month.

The AdvisorShares Pure U.S. Cannabis ETF MSOS was up by 6.6% in recent trades. The ETFMG Alternative Harvest ETF MJ was up by 2.5%. Among individual cannabis stocks, Curaleaf Holdings Inc. was up by 4.8%, Green Thumb Industries Inc. was up by 5.7%, Cresco Labs Inc. was up by 4.3%, Trulieve Cannabis Corp. was up by 5.6% and Verano Holdings Corp. was ahead by 8.9%.

Also read:Cannabis banking bill looks poised to get Senate committee's OK on Sept. 27

-Steve Gelsi

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09-15-23 1050ET

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