CSE:ACRG.A.U - Post by User
Post by
geodcanon Oct 14, 2021 3:53pm
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Post# 34006682
Canopy is dominating
Canopy is dominatingBNN today over the WANA deal which is similar tothe Acreage deal and the TER deal, all hinging on a "triggering event " !
This is smart wrangling by Canopy management but leaves investors hanging on a limb. hoping it doesn't break such that Acreage shareholders get drowned in the river after the initial fockin' over when they revisited "the deal" !
Acreage has been particularly beat down in investor's eyes because it is a leap of faith to jump on board a company that hasn't done as well as other US MSOs yet although showing progress. I can't help but think the taint of a Canadian LP having a pending deal has hurt in the eyes of US investors.
This kind of a deal pending on future events and integrity of a company who already raised the spectre of walking from the original deal, because the consideration was no longer valid given the beatdown that similar companies were taking.
Canopy needs what Acreage brings to the deal with either Acreage or something similar. There is very little appreciation for what Acreage brings and the branding deal that we've heard about where Acreage is going to have Canopy's beverage rights, is going to be a bottomline changer for Acreage and Canopy.
Remember who has really got influence and deep pockets that are already placing their own chosen management in key positions of all three companies if they can zero out the balance sheet.
I don't think STZ wouldn't step up with more financing to support this effort that is critical to all the parts coming together and a US footprint.
It will come down to integrity and I believe that STZ shareholders believe that they have this.
There is still a sweetener for potential Canopy shareholders with the Acreage deal with Canopy such that 3 shares of Acreage fixed will get replaced with 1 share of Canopy with a trigger.
That is about a $7 investment reaping one share of CGC worth $13.77 at todays price, subject to Canopy swallowing up Acreage fixed shares.
There are also ACRG floating shares which are about 30% of ACRG which will be under Canopy management with a triggering event that I believe, will follow suit with the fixed shares and be swapped out for Canopy shares or a guaranteed $6 ish.
My guess is that ACRG shares will get great appreciation because a triggering event will create huge demand for Canopy which should imho reach old highs or higher and be in short supply.
I don't think that STZ would dare to try to revisit this deal one more time, considering that they are doing the same kind of deals with TER and WANA.
jmho, glta and dyodd