Post by
geodcan on Jul 06, 2022 2:57pm
floating or fixed
Interesting that the floating shares are more appreciated than the fixed. $1.09 US today is inked to get you over $6 US after a triggering event at Weed's option.
The fixed shares that get swapped out at 3 Acreage gets you 1 CGC/WEED share are .67 US for Acreage fixed and CGC is $2.65 US todays shareprices. The gap is getting closed pretty quick from lack of interest by investors.
There is a big "if" in this revamped deal that Canopy doesn't have to honour the deal although there was a suggestion that it is the honourable thing to do. Canopy is going to need a MSO for rapid launch in the US and they already plunked down over $30 million to revisit the deal and all that is left for control is to print up share certificates.
And those ACRG floating shares, I believe, would probably keep close to par with the Canopy shares or Canopy would buy them for the $6 per share before they rise.
Is there one good run left with the US passing some legislation that is considered a triggering event to launch the US greenrush that I believe has a huge run in front of it.
200 baggers aren't likely after the trouncing potpreneurs are taking but I can imagine it getting back to its old highs when we launch into the US marketplace that is 10x the potential of Canada's greenrush.
A lot of Americans are already invested in Canopy and other Canadian LPs but a lot wore the same fear from Fed action as Canadian and other non US players.
Canopy is still a leader imho and Acreage was a leading MSO for assets and amount of States it is operating in. Being in the US marketplace will turn the tide for both these companies imho or they will go the way of the dinosaurs.
I bet heavy on Acreage becoming Canopy Growth USA division because of the revisited deal that was inked and I am more concerned than ever with the beating that marijuana and hemp stocks are taking that they might want Acreage to drop trou one more time.
Or they could just buy all of the shares at these values on the open market which is a far cry from the $4.3 billion that they put on the Acreage asset way back in the good old days.
I knew this was going to crash for the small guys but fingers crossed that Constellation is going to stay the course and back Canopy if more cash is needed or will they walk from the deal!