Cannabis stocks were mostly higher Wednesday, as investors awaited the results of shareholder votes on Canopy Growth Corp.'s proposal to acquire Acreage Holdings Inc. with the companies hosting separate meetings that kicked off at 10 a.m.
Canopy CGC, +1.74% WEED, +0.87% has an option to buy Acreage ACRGF, +2.95% once cannabis is fully legalized in the U.S. for $3.4 billion, giving it a foothold in what is expected to become the biggest cannabis market in the world. The deal must be approved by shareholders from both companies, allowing Acreage to sell some of Canopy's best-known brands, including Tweed and Tokyo Smoke.
Canopy, which will report its fiscal fourth-quarter earnings after the bell Thursday, has warrants in two other U.S. companies, Terrascend and Slang Worldwide, which it can exercise once federal regulations change.
Bank of America lowered its stock price target for Canopy by $5 to $75 on Wednesday, according to Benzinga. The bank is sticking with its buy rating on the stock, which was last up 1.7%.
CannTrust Holdings Inc. shares CTST, +8.92% TRST, +6.77% soared about 7%, after that company unveiled its plan to establish a presence in the U.S. via a joint venture with California's Elk Grove Farming Co. LLC. The two are creating an entity that will be 50% jointly owned and will provide access to more than 3,000 acres of land in the Golden State to produce hemp with a high concentration of CBD, the non-intoxicating ingredient in the plant that is held to have wellness properties.
Artcile come from: https://www.marketwatch.com/story/cannabis-stocks-higher-as-canopy-shareholders-meet-canntrust-unveils-california-venture-2019-06-19?mod=mw_quote_news
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