The Canadian cannabis market is on a roll. Not only have Canadian cannabis stocks been trading relatively higher the past two days, but the world has also been informed today that Ontario-based Canopy Growth (TSE:WEED) is one of the top bidders for Alcaliber SA, a Spanish firm. Not bad, right?
What Do We Know?
The top bidders for the Spanish firm are as followed: Canopy Growth, GHO Capital, which is a United Kingdom healthcare investor, and Alantra Partners SA, which is a Spanish investment firm. For those who don’t know, Alcaliber is owned by Juan Abello’s investment fund Torreal SA. Sanofi, a French drugmaker, also holds a 40% stake in the firm. Despite two other bidders, word has gotten out that Canopy Growth is seen as the most likely acquirer.
To no surprise, this optimism has caused the Smith Falls, Ontario-based company’s stock to trade higher. Currently, Canopy Growth is trading at $33.70, which puts the WEED stock up $1.33, or 4.11% on the Toronto Stock Exchange. It currently has a market cap of a whopping 6.68 billion.
It’s important to remember, however, that talks are still ongoing. As a result, it’s likely that Alcaliber SA will bring in more bidders. We won’t know who acquires the morphine and thebaine producer until early April, but final bids are due in the next couple of days. In the deal, Alcaliber is said to be valued at roughly 200 million euros, or $246 million, to 275 million euros.
This news comes on top of a successful week for Canopy Growth. On March 2, the company expressed an interest in trading on the Nasdaq Exchange, which caused its stock to climb nearly 10%. Then, on March 5, it was one of the trading days biggest cannabis stock gainers.
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The Takeaway
Even though things look promising for Canopy Growth acquiring the Spanish firm, I recommend not getting your hopes up, as GHO Capital and Alantra Partners are both worthy competitors.
All I can suggest is keeping your eyes peeled over the next couple days as that’s when final bids are due. Good luck, Canopy Growth! Canada’s rooting for you.
Featured Image: Twitter
