Medical marijuana producer firm Canopy Growth Corporation (OTCMKTS:TWMJF) has turned to be the first Canadian firm in the industry valued at over $1 billion after robust quarterly report sent the stock on a tear. In last trading session, the stock price of Canopy gained more than 18% to close at $10.04. The gains came at a share volume of 1.13 million compared to average share volume of 344,238. That values the firm at nearly $986.68 million.
As recently as July, Canopy Growth was valued less than a third of the current market cap. But that situation was before seven states in the U.S. voted to legalize medical or recreational marijuana. Legal marijuana would become a business jackpot for Canada. The firm’s recent financial report indicates remarkable growth to match demand, as the firm confirmed as many as 24,400 registered patients at the close of September. Now this number is up from 6,600 recorded in the previous quarter and also from registered patients of 6,200 from a year ago.
Canopy Growth announced the new patient figures as it posted a profit of $5.4 million for the quarter ended September 30, 2016. The profits compare with a profit of $3.9 million in the same period, a year earlier, when it recorded fewer shares outstanding. Revenue in 2Q2016 came at almost $8.5 million compared to $2.5 million in the reported quarter last year.
Despite all the recent developments, Canadian banks are still wary to lend to marijuana firms. During a conference call to talk on the Canopy Growth’s quarterly results, its CEO Bruce Linton focused on the firm’s measures to expand production capacity to fulfill the growing demand.
What really impressed the market was the revelation of the firm’s international ambitions, as it intends to supply marijuana users internationally wherever it is legal. As has been expected eagerly by Canadian shareholders, that will cover Canada coming year, if the Liberal government stays on its promises.