What happened

Shares of Canadian cannabis company Canopy Growth (CGC 2.41%) leaped nearly 11% higher (10.8% to be precise) through 10:30 a.m. ET on Tuesday after the company released the voting results from its annual general and special meeting of shareholders.  

Two weeks ago, if you recall, Canopy management had urged investors to vote in favor of several proposals laid out at that meeting, including:  

  • Electing seven named directors to its board of directors.
  • Appointing its auditors for the year.
  • Adopting a new equity incentive plan.
  • Amending its bylaws to consolidate the company's shares.
  • Setting compensation for its officers.
  • Converting some convertible debt to shares of the company.

So what

So what happened? Well, basically, management got everything it asked for. All six of these "matters put forward before the Company's shareholders" were approved.

This was hardly surprising, though. Managements generally get everything they ask for in these kinds of annual general meeting votes. For that matter, the subjects up for consideration were mostly routine. The most controversial item on the list -- the last question considered -- might even be considered a negative by investors less than thrilled with the prospect of more shares coming on the market to dilute their ownership stakes and their shares of any future profits.

Now what

So why the outsize positive reaction to Canopy Growth's news today? Most likely, this is investors demonstrating confidence in management and the way it's running the company.

That's not necessarily a bad decision. With marijuana legalization finally seeming to be making some progress in Washington, D.C. -- with movement by regulators to relax the scheduling regulations on cannabis, and movement in Congress to permit banks to offer banking services to cannabis companies -- things do seem to be progressing quite nicely for Canopy Growth's prospects. And the stock is up nearly triple over the past month.

Perhaps what investors are really telling us with these voting results is that with all the smooth sailing Canopy Growth has enjoyed lately, they simply don't want to rock the boat.