Canopy Growth Corp (WEED)

[Bonno]

Canopy Growth’s painful decline
As a Canadian, I’ve been reading bad news about Canopy Growth for a long time.

Bad news in cannabis isn’t unique to Canada – MedMen’s recent cash flow problems, for example, are part of a similarly painful story of decline.

But in the early days, Canopy represented the possibilities of legal cannabis: economic growth in small, hurtin’ towns and mainstream appeal that broke free of stoner stereotypes – all driven by a blend of accomplished CPG execs and drug policy activists.

So the latest news, unsurprising as it is, was terrible: 800 layoffs, the closure of its flagship facility and a new “transformation” strategy designed to make the company profitable.

The company is also accelerating its plans in the US, where a lot of the same headwinds – high taxes and the illicit market, for example – exist as well. We’ll be keeping a close eye on the next chapter of the story.