Canopy Growth Corporation (NASDAQ:CGC) shares are moving higher in early trading Friday following gains of more than 20% on Thursday. Here's a look at what's going on.

The Details:

Canopy Growth announced after the market close Thursday that CBI exchanged 17,149,925 common shares in the capital of the company for exchangeable shares for no consideration. As a result, the CBG Group no longer holds any common shares in the company.

In connection with the note exchange, Garth Hankinson, Judy Schmeling and James Sabia each resigned from the board effective immediately.

"This is another important step forward for the Canopy USA strategy following the recent and overwhelming approval of our shareholders to create this exchangeable class of shares," said David Klein, CEO of Canopy Growth.

"We look forward to maintaining an enduring positive relationship with CBI as our largest shareholder, and to the further advancement of the Canopy USA strategy that this change enables as Canopy USA moves forward with the acquisitions of Wana, Jetty and Acreage."

Related News: What's Going On With Google Parent Alphabet Stock Ahead Of Earnings?

Is CGC A Good Stock To Buy?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like Canopy Growth's page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. Canopy Growth does not pay a dividend, but obviously has a few ways it can return value to shareholders. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Canopy Growth will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

CGC Price Action: According to Benzinga Pro, Canopy Growth shares are up 1.28% at $7.93 at the time of publication Friday.

Image: Nicky from Pixabay