Canopy Growth stock has collapsed from a peak of $568 per share to around $1.15, making it a money-losing penny stock with shareholder dilution concerns. The article suggests investors who bought at highs consider selling to harvest tax losses rather than holding onto the investment hoping for a recovery, as the marijuana sector enthusiasm has significantly cooled.

The article compares two major cannabis stocks, Tilray Brands and Canopy Growth, as potential long-term investments following recent U.S. regulatory developments. While both companies have improved financial results and positioned themselves to capitalize on emerging cannabis market opportunities, the author concludes that neither is likely to be a millionaire maker due to significant regulatory uncertainty and industry challenges. However, Tilray is recommended as the better choice due to its greater operational diversification and geographic presence.

The recreational cannabis market is projected to grow from $2.24 billion in 2025 to $3.32 billion by 2030, with a CAGR of 7.8-8.2%. Growth is driven by increasing legalization, public acceptance, demand for high-THC products, and innovation in premium edibles, beverages, and vape formats. Key players are launching innovative products and pursuing strategic acquisitions to capitalize on expanding market opportunities.

MTL Cannabis Corp. shareholders have approved a special resolution authorizing Canopy Growth Corporation to acquire all issued and outstanding common shares of MTL Cannabis. The arrangement, agreed upon in December 2025, received 99.97% approval from all MTL shareholders and 99.80% from minority shareholders. MTL Cannabis expects to seek final court approval on February 23, 2026, with closing expected before the end of March 2026.

MTL Cannabis Corp. urges shareholders to vote in favor of its proposed arrangement with Canopy Growth Corporation at a special meeting on February 17, 2026. Under the deal, MTL shareholders will receive 0.32 Canopy Growth shares plus $0.144 in cash per MTL share, representing an 82% premium to the December 12, 2025 closing price. The arrangement is expected to provide MTL shareholders with enhanced liquidity, exposure to Canopy Growth's global cannabis operations, and potential cost synergies of approximately $10 million annually. Both the MTL board and independent proxy advisors ISS and Glass Lewis recommend voting in favor.

Leading proxy advisory firms ISS and Glass Lewis have recommended MTL Cannabis shareholders vote in favor of the proposed arrangement with Canopy Growth. Under the deal, Canopy Growth will acquire all MTL shares, with each shareholder receiving 0.32 Canopy shares plus $0.144 in cash per MTL share. Both firms cited the meaningful premium to the unaffected share price and the combination of immediate liquidity with ongoing upside participation as reasons for their recommendation. The MTL Board unanimously supports the arrangement, with the shareholder vote scheduled for February 17, 2026.

Canopy Growth stock has declined 58% in 2025 and 46% in 2024, with the cannabis producer struggling with profitability and growth. While the stock may see brief rallies around earnings announcements, the company's poor fundamentals—including CA$88 million in operational cash burn over the past year—make it a highly risky investment. The article advises investors to avoid the stock until fundamentals improve and sustainable profitability is demonstrated.

MTL Cannabis Corp. has mailed its management information circular for a special shareholder meeting scheduled for February 17, 2026, to vote on its acquisition by Canopy Growth Corporation. Under the arrangement agreement, each shareholder will receive 0.32 Canopy Growth shares plus $0.144 in cash per MTL share, representing an 82% premium to the December 12, 2025 closing price. The board unanimously recommends approval, citing significant premiums, improved liquidity, access to capital, and expected cost synergies of approximately $10 million annually.

President Trump's executive order to reschedule cannabis to Schedule 3 could eliminate Section 280E of the Internal Revenue Code, allowing U.S. cannabis operators to deduct business expenses for the first time. This represents the most significant federal cannabis policy shift in over 50 years. However, challenges remain including inability to list on major exchanges and lack of banking safe harbor provisions.

Canopy Growth trades below $2 despite being a leading Canadian cannabis producer, but the article advises against buying. While recent U.S. cannabis rescheduling from Schedule 1 to Schedule 3 provides some tailwinds, systemic issues persist: the Canadian market has underperformed expectations, the company faces intense competition, and cannabis remains federally illegal in the U.S., limiting profitability. The stock's low price reflects fundamental problems rather than a bargain opportunity.

Cannabis stocks have sold off despite President Trump's December 2025 Executive Order directing cannabis rescheduling, creating a potential contrarian opportunity. Moving cannabis from Schedule I to Schedule III would eliminate IRS Section 280E, effectively removing a 70%+ tax burden on operators and transforming industry profitability. Canopy Growth and Tilray are positioned to benefit from potential 2026 regulatory changes, with elevated short interest creating potential for a significant upside move if positive announcements emerge.

President Trump's executive order rescheduling cannabis from Schedule 1 to Schedule 3 has improved the regulatory landscape for the cannabis industry, offering easier banking access and business expense deductions. However, analyst Prosper Junior Bakiny argues that Canopy Growth and Aurora Cannabis lack attractive investment prospects despite this development, citing ongoing federal illegality, interstate commerce restrictions, and poor financial performance in their home market.