Medical marijuana producer Canopy Growth Corp. has become the first Canadian company in the sector valued at more than $1 billion after strong quarterly results sent the stock on a tear.
The company was trading hands at $11.16 per share when stock markets closed in Toronto on Monday. That values the company at almost $1.3 billion.
As recently as July, the company was worth less than a third of that. But that was before seven U.S. states voted last week to legalize some form of either recreational or medical marijuana.
The company’s recent financial results show impressive growth to keep up with demand, as the company says it has 24,400 registered patients at the end of September. That’s up from 6,600 during the previous quarter and 6,200 a year ago.
The company released the new patient figures as it reported a profit of $5.4 million or a nickel per diluted share for the quarter ended Sept. 30.
The result compared with a profit of $3.9 million or a nickel per diluted share in the same quarter last year when it had fewer shares outstanding.
Revenue in what was its second quarter totalled nearly $8.5 million, up from nearly $2.5 million in the same quarter last year.
During a conference call to discuss the company’s quarterly results, CEO Bruce Linton emphasized the company’s efforts to expand its production capacity to keep up with demand.