Canopy Growth Corporation CGC shares are experiencing an upward trend on Friday. Over the past month, CGC has seen a significant increase of more than 250%.
What You Need to Know:
Cannabis stocks have been on the rise following news that the Department of Health and Human Services has recommended the rescheduling of marijuana from a Schedule I substance to a Schedule III substance, although the DEA has yet to respond publicly to this recommendation. This development has given hope to cannabis companies and investors regarding potential federal regulatory changes for the industry.
Recently, Canopy Growth made an announcement stating that it will cease funding its BioSteel business unit as part of its efforts to reduce cash burn and simplify operations.
Canopy Growth’s CEO, David Klein, explained, “While BioSteel has achieved significant revenue growth and remains an attractive asset, it does not align with Canopy Growth’s cannabis-focused asset-light strategy.”
“In our ongoing transformation plan, we are committed to taking decisive action to improve profitability and solidify our position as a leader in the North American cannabis sector.”
CGC shares are currently trading at higher volumes. According to Benzinga Pro data, more than 69.6 million shares have been traded, surpassing the stock’s 100-day average of 47.591 million shares.
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CGC Price Action: At the time of publication, Canopy Growth shares are up 14% at $1.43 according to Benzinga Pro.
Image: Christophe Lemiesz from Pixabay