Investing

Canopy's Largest Shareholder Greenstar Backs Creation of US Holding Company

Canopy Growth Corp. said Tuesday that it would create a US holding company to keep its options to buy interests in various US cannabis firms.

“This strategy and positioning are true differentiators, which we expect to enable our investors and brands to realize value in the near term while positioning Canopy for profitable growth and a fast start upon US federal permissibility,” Chief Executive David Klein said.

The company also said it acquired weed firm Acreage Holdings. It’s buying 70% of the shares at a fixed 0.3048 Canopy per Acreage share. It’s also getting an option to buy the balance on a floating basis.

The new company Canopy USA Holdings will house the Acreage assets, and options to buy stakes in edibles brand Wana and cannabis producer Lemurian.

Jefferies analyst Owen Bennett said the Canopy Growth deal “could also have positive implications for multistate operators and paths to uplisting, potentially adopting similar structures.”

In the last filing, dated July 19, 2022, Greenstar reported owning 50.20% of the company, indicating no change in their holdings.

What are other large shareholders doing?

Vanguard Group Inc holds 8,099,679 shares representing 1.69% ownership of the company. In its prior filing, the firm reported owning 7,878,052 shares, representing an increase of 2.74%. The firm decreased its portfolio allocation in WEED by 54.06% over the last quarter.

ETF Managers Group, LLC, holds 7,856,049 shares representing 1.64% company ownership. In its prior filing, the firm reported owning 7,325,327 shares, representing an increase of 6.76%. The firm decreased its portfolio allocation in WEED by 32.00% over the last quarter.

MJ – ETFMG Alternative Harvest ETF holds 7,856,049 shares representing 1.64% ownership of the company. In its prior filing, the firm reported owning 7,325,327 shares, representing an increase of 6.76%. The firm decreased its portfolio allocation in WEED by 25.02% over the last quarter.

VGTSX – Vanguard Total International Stock Index Fund Investor Shares holds 3,249,463 shares representing 0.68% ownership of the company. In its prior filing, the firm reported owning 3,254,013 shares, representing a decrease of 0.14%. The firm decreased its portfolio allocation in WEED by 52.88% over the last quarter.

Millennium Management LLC holds 3,152,591 shares representing 0.66% ownership of the company. In its prior filing, the firm reported owning 0 shares, representing an increase of 100.00%.

What is the overall institutional sentiment?

There are 411 funds or institutions reporting positions in Canopy Growth Corp. This is a decrease of 60 owner(s) or 12.74%.

Average portfolio weight of all funds dedicated to Canopy Growth Corp is 0.0864%, an increase of 9.8129%. Total shares owned by institutions decreased in the last three months by 15.91% to 60,173,228 shares.

This article originally appeared on Fintel

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