Deloitte: How big of a deal is this in Canopy vs Aphria?In reading Progrow's thread further down, he/she mentioned something that resonated with me and I thought that it deserved it's own thread.
At the Mettrum vote meeting, Bruce sited having Deloitte as their accounting firm as being a big deal. My understanding from him was that the relationship and Deloitte's 'stamp of approval' gives Canopy legitimacy and transparency in eyes of the markets. He also mentioned that Canopy expanding southward would void that relationship as Canopy would be in contravention of Federal law in the US.
My core position is in WEED but I do also own 5K sh of APH. (expensive day yesterday.. not good) and I got to thinking (also not good).
Aphria, in purchasing two stakes of two medical producers in Florida and Arizona, while compliant w State law, are in contravention of US Federal law. How will this affect them moving forward?
So I emailed my uncle. My uncle is kind of a big deal. Former Nat Director of Tax for one of the big 4/5 accounting houses.. So he knows his sh#t. I asked him how the big accounting firms would view APH's US ops and would they audit them or do their books for them. Here is his somewhat criptic answer:
"They would not audit if the uncertainty was so great that they could not measure on the statements the financial implications of being offside with the US. Don't know if that is your case."
He clarified that "uncertainty" was the legality of the business that APH was operating, meaning if it was "uncertain" that none of the big Acct houses would put their stamp on APH's books.
In my simple mind, this is kind of a big deal. To me, it's the difference between a real, legit business versus one that is still on the fringes.
Thoughts Stockhouse? Dicuss..