Canopy Growth (NYSE:CGC) announced Tuesday that it will be closing its corporate-owned stores in Canada until further notice as a result of the COVID-19 pandemic. The company's 23 Tweed and Tokyo Smoke locations across Newfoundland, Saskatchewan, and Manitoba will shut down as of the end of business on Tuesday.
"Given the current situation, it is in the best interest of our teams and our communities to close these busy hubs until we are confident we can operate our stores in the best interest of public health," said CEO David Klein in a press release. No timetable was offered as to when the stores may reopen.
The news comes as countries around the world are cracking down on large public gatherings as a result of the coronavirus. Canada has more than 400 known cases of COVID-19 thus far.
The spread of the coronavirus, and its severe and forecast impacts on the economy, have sent the stock market into a tailspin -- the S&P 500 index is now down more than 25% from where it began the year. The Horizons Marijuana Life Sciences (OTC: HMLSF) is down more than 44% in 2020, while Canopy Growth has lost more than half of its value. And that wasn't the beginning of the sharp decline for the pot producer. A year ago, it traded at more than $40 per share; today it's barely above $10.
Yet the company is coming off an improved quarter in which its sales were up 49% year over year. Unfortunately, profitability remains out of reach for the pot stock, as it's posted losses in four straight quarters.