Canopy Growth (CGC) has disclosed a new risk, in the Accounting & Financial Operations category.
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Acreage Holdings’ recent financial statements reveal significant uncertainties about its ability to maintain operations, posing potential risks to Canopy Growth’s U.S. strategy. As Acreage struggles with an accumulated deficit, net loss, and negative cash flow, doubts arise about its sustainability as a going concern. Canopy Growth, having invested heavily in Acreage’s debt, faces the risk of losing its investment should Acreage fail to meet its financial obligations. This precarious situation could negatively impact Canopy Growth’s financial results and strategic objectives in the United States.
Overall, Wall Street has a Moderate Sell consensus rating on CGC stock based on 2 Sells and 2 Holds.
To learn more about Canopy Growth’s risk factors, click here.
