Canopy Growth Faces Downside Risk if Uncertain MTL Deal Fails to Close, Analyst Warns

Canopy Growth (CGC) has disclosed a new risk, in the Corporate Activity and Growth category.

The analyst notes that the completion of the MTL Arrangement remains uncertain because all conditions precedent, including MTL shareholder and regulatory approvals, may not be satisfied or waived. He observes that there is no assurance as to whether these conditions will be met, or, if they are met, the timing of such satisfaction. He further highlights that failure to satisfy these conditions could result in the acquisition of MTL not closing. In that scenario, he believes the price of Canopy Growth’s shares could decline, particularly if the current valuation assumes successful completion of the acquisition and realization of its anticipated benefits.

The average CGC stock price target is $2.99, implying 171.82% upside potential.

To learn more about Canopy Growth’s risk factors, click here.