Let's get American retail and institutional money involved They are involved. Despite the Fed laws hanging over the US greenrush, sales are about 3 to 1 for volume on US symbol CGC and other marijuana biggies too.
Some US investors are willing to rely on State Law protection to invest in marijuana companies.
Canadian LPs are not jumping in because it will make a scene that could draw fire from the Feds or protectionist measures from US companies.
There is a major roadblock that is going to be taken care of one of these days and that is getting the Fed opinion of criminality changed, eliminated or whatever it takes to give confidence to non US investors.
I would like to see a Federal bill that would give them a solid working plan for all of the States rather than the clusterfuch they have right now. I also think most of the US MSOs would welcome that too. Not being able to ship skus over State lines is costly to those that have already built vertically integrated marijuana businesses because they need the whole chain from seed to sale.
I believe that they want to compete by using better strains from wherever to make the best products they can and having one manufacturing plant makes it cheaper and more consistency in quality and safety.
Smart brave US investors didn't wait, they are already piling in which is why the US MSOs have done as well as they have, while Canada's LPs are dwindling due to the clouding issue of legality and penalization.
It's no joke in the US to get caught violating Fed law. Seizure of investment, criminal charges, jail are all very real and Canadian LPs know this which is why they are trying to do workarounds with branding deals and the creative "sometime in the future deals" like Canopy has with Acreage Holdings, leading US MSO.
Canopy has ponied up $30 million or so to lock up a deal with Acreage which is their chosen one for putting down roots on American soil. This is inked, to happen, when the Fed law of criminality is changed or removed, at the option of Canopy.
Canopy and Acreage had to revisit the original deal to re-evaluate it in light of the biggies losing marketcap such that Canopy will now swap 3.05 Acreage shares for Canopy shares, if Canopy continues with their intent of swallowing up Acreage for their US footprint.
Canopy needs what Acreage brings to the deal to remain number one world leading marijuana and hemp co.
They revisited the deal once but I doubt that they would dare to try that twice. It has decimated the sp of Acreage which is starting to look like a very good deal for recent buyers of Acreage.
US decriminalization will be an event like the goldrushes of old and smart, brave US investors know this and are piling into the bigger companies to have first strike advantage.
When Canopy swallows up Acreage's assets they will convert to Canopy and Canopy needs this or something like it to maintain first place. The US is the big enchilada and the US politicians are dragging their feet to make this happen, but it is gonna'!
I doubt that half the investors even know about the Acreage deal with Canopy but it is worth a look. The minute Canopy puts down footprints in the US, Canopy shares will hit their old highs or higher by my guesstimation and Canopy shares will be in short supply so Acreage is a segway in.
The big "if" is whether Canopy doesn't exercise the option for another plan. Canopy is getting their branded products onto shelves in the US and that will show up in Acreage's bottom line.
glta and dyodd