Post by
geodcan on Jul 24, 2023 5:30pm
By my calculations
there is no premium sp incentive at current prices for Acreage shareholders to buy Acreage A or B.
That just leaves the share swap for the Acreage shares being swapped for Canopy shares.
I think when/if this comes off as planned that it will bolster the share price of Canopy shares and put pressure on availability.
I imagine this event might be construed as momentous, at least to Canopy shareholders and a relief for Acreage shareholders.
For myself, I think I would just buy the cheap Canopy shares which seem to be better value but what if the whole thing gets queered and Acreage, the company Caldini worked so hard on to bring up the value goes it alone.
Klein has mentioned that it is honourable to follow through but also hasn't been opposed to revisiting the Canopy/Acreage deal because of the beat down that the whole industry is taking.
I am not clear on how all of these make the jump to Canopy USA which I understand is a holding company that will be beneficial for pulling all of these spokes together into the hub.
It seems to me that the Canopy shares for Acreage needs to be unencumbered such that it is just a straight deal and Constellation has suggested that they are committing their Canopy shares to Canopy USA shares so they can use the Acreage system of MSOs for the big launch on US soil.
Then there is 300k sq feet of warehouse in an industrial park in New York that any news on has gone very quiet. That is a dignified sized warehouse that i would imagine might lodge a bottling facility in that would be useful for the East Coast, if Constellation doesn't have something that would suffice for cannabinoid infused beverages.
There are a large variety of early entrants to the cannabinoid infused market but with a lot of restrictions from no Interstate transfer of skus or active ingredient and a lot of them are flash in the pan that come out of the gate hot and then fizz out.
The US needs to do a lot of legislation work for cannabis and hemp beverages to achieve success which is going to require the potpreneurs to do a lot of lobbying for what the industry needs, like a Federal legal program that allows central manufacturing and all State distribution, allow thc beverages in alcohol venues in order to launch a successful new vice beverage sku that can hit it's stride.
Or they can just leave it like a whale stuck on the beach trying to get back to open water.
If this legislation doesn't happen by 2024, all of the players looking to the States should be looking at plan B , like Australia or Germany or ???? to get full measure for shareholders.
glta and dyodd