3 Glaring Red Flags Canopy Growth Investors Can't Afford to Ignore
Cannabis producer Canopy Growth (NASDAQ: CGC) has been focused on the U.S. market for multiple years now. In 2019, it announced plans to acquire Acreage Holdings, and since then, it has made similar deals with other companies.
But promises of long-term growth are nothing new for the cannabis industry. Investors interested in the industry need to be careful about getting caught up in the hype. And when it comes to Canopy Growth, there are some serious red flags investors should consider before taking a chance on the stock.
Canopy Growth has been expending resources on expansion into the U.S., but there's one huge problem: They can't operate in the market just yet. And while the launch of Canopy USA (where it will consolidate its U.S. investments) may have you convinced it's inevitable, in reality, it could still take many years for regulation to take place (assuming it does at all). Canopy Growth's aggressive plans to consolidate results from Canopy USA could also risk the company getting delisted from the Nasdaq.
Source Fool.com
