CSE:ACRG.A.U - Post by User
Post by
geodcanon May 30, 2022 3:22pm
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Post# 34717845
Acreage is the most out of favour, beatdown stock of
Acreage is the most out of favour, beatdown stock of potential that I am invested in. Considering its rto potential to become Canopy Growth shares when Canopy decides its time to do business in the US.
It is written, or at least there is a deal inked where Canopy spent $30 million or so for the right to swap Acreage fixed shares for Canopy shares and to buy Acreage floating shares for $6 US and some change.
Acreage is a major US MSO with most of the parts that Canopy needs for rapid establishment of their tail to snout marijuana and hemp business on US soil.
At current sp values, this can't/shouldn't be ignored by any investor interested in Canopy shares.
This deal was conceived when Acreage was valued at $3-4 billion but came down to earth pretty quick along with all of the players that weren't showing profit. Canopy didn't walk from the deal but revisited it and revamped it to the $30 million pricetag and financing backing which was a great deal for Canopy for their American footprint.
Acreage Holdings is a major multi state operator that is undervalued considering the progress they have recently made to get clean and mean and push towards black ink on their balance sheet.
Canopy could walk from the deal they struck with Acreage but that would totally discredit Canopy and send shareholders running for the exits. Acreage or a similar company to Acreage is needed by Canadian LPs, namely Canopy, for US expansion.
Canopy has already paid the bargain price of $30 plus million and they just need to print up some Canopy shares to consumate the acquisition rto that is inked.
It doesn't get any cheaper than that but is contingent on decriminalization of pot at the Fed level in the US or a change in perception of Canopy who may just decide to rely on the handshake deal of State Law protection such that individual States will administer State rules for legal States and the Fed will allow that to happen without interference.
I don't know how much longer the politicians can keep this on the backburner!
Several US MSOs are showing profits by careful navigation and understanding of the rules, not that Canopy isn't making inroads into the US market with branding deals to have US companies manufacture their recipes and sell those brands on US soil. Revenue to follow when options are triggered.
Acreage is worth a look imho if you think that Canopy is a buy.