It’s become the first weed stock included in the S&P TSX Composite Index and has attracted what it perhaps the largest single investment to date, but Echelon Wealth Partners analyst Russell Stanley thinks there is still plenty of upside in Canopy Growth Corp. (Canopy Growth Stock Quote, Chart, News: TSX:WEED).

This morning, Canopy announced that it had closed a $24.25-million private placement by selling 2.5-million shares at $9.70 a share to a single investor.

“With the recent addition of Canopy Growth to the S&P/TSX Composite Index, imminent Canadian adult access markets, and the awakening of legal cannabis markets in Germany, Australia, Brazil, Israel and elsewhere around the globe, we are entering a very opportunistic period for our business,” said CEO Bruce Linton. “This equity financing gives us more resources so we can accelerate into this expected window of opportunity.”

Stanley estimates that this investment gives Canopy $130-million in cash, something he says give it the flexibility to continue its expansion and pursue acquisitions. After Canopy became the first billion dollar weed stock by market cap and the first to be listed on the S&P TSX Composite Index, he says this development is also historic.

“We believe this represents the largest single investment (in dollar terms) made by a single investor to date,” says the analyst. “While the investor was not disclosed, we view the news positively as it is a validation of the buying opportunity available to investors at current levels. This follows the Company’s recent announcement of inclusion in the S&P/TSX Composite Index, Canada’s preeminent stock market index.”

In a research update to clients today, Stanley maintained his “Speculative Buy” rating and one-year price target of $14.00 on Canopy Growth Corp. implying a return of 44 per cent at the time of publication.

Stanley thinks Canopy will post and EBITDA loss of $14.2-million on revenue of $40.4-million in fiscal 2017. He expects these numbers will improve to an EBITDA loss of $6.0-million on a topline of $130.4-million the following year.