RE:RE:RE:RE:RE:RE:The Fallacies of Stockhouse... MNK - you answered it - there is NO public agreement. No one except STZ and CGC know the price and expected volume to which STZ will purchase CBD for "Constellation Beverages" - and this brand will not be owned by Canopy. Canopy will not be in the business of making beverages... they are in the market of growing and selling leaf/extract to those who know how to sell beverages.
Constellation gave them $5B to take a flier but that doesnt come free. Constellation is concerned with making money for Constelltaion share holders, not Canopy shareholders. While they obviously want to make money on their investment, they are far more interested in controlling the input costs/sourcing to their new growth business line.
Many of these companies who made early sweetheart deals did so with at a cost - future supply is going to be signficantly discounted in return to being tapped with legitimacy.
Without any economics surrounding what Canopy will sell CBD for, how can you possible estimate a revenue line?
This is where the retail community falls flat on their face - they can come up with wonderful scenarios but refuse to actually put pen to paper and walk through a normal business relationship to test whether their hypothesis makes rational sense.