C'mon SECCanada Bread gets tagged with a $50 million bill for price fixing and the stock markets have turned in to a free-for-all of abuse to separate investors from their money.
What is going on with all of the marijuana stocks can only be described as price fixing with sharevalues exagerated by marketmakers and shortsellers.
Shortselling needs to be outlawed or shareholders should at least have the option of not allowing their shares to be "borrowed" where brokerages and bankers lend shares that aren't theirs and also capitalize with borrowing rates in addition to commissions.
Sweet deal if you are a part of the benefactors club responsible for orchestrating this.
Too much marijuana and product and too many companies piled in to make their fortune which initially seemed like a given but got slapped hard by reality as irrational exuberance got replaced with good old traditional accounting principles.
Sadly the Accounting business has eroded to a medium of manipulation and extra ledger entries that skew their whole reason for being in favour of embellishing whatever story management wants to tell.
I want to see accounting principals to be put into law such that there can be no tweaking and massaging to dupe investors.
That will only happen by investors contacting their political reps and demanding it, for fair treatment of small investors to be investors and not dupes.
Can Canopy pull off this complicated plan under the guidance of STZ people?
They think they can and if they do it should help to turn the price movement positive as will the SAFE proposal getting passed.
There still needs to be a rightsizing of players and supply of which there are too many players and too much supply.
The LPs and MSOs are still able to raise capital while some of the smaller players can't and STZ is still committed and doing deals that will complement their US ambitions by buying up "interesting" companies and getting rights to brands.
Acreage is the hardest done by MSO, possibly by design because what STZ/Canopy is trying to do here hasn't been done in the pot biz before. STZ has embedded their people in these companies and has enough influence with their investments that they haven't infiltrated yet, to call the shots anyway.
I don't know how much more money it will take to stay in the game but STZ put up $5 billion C initially and have their own finance arm to keep this complicated deal viable.
It does seem that Canopy has waived their demand that pot has to be decriminalized at the Federal level before they will put down roots in the US. It is more essential than ever since Canada's law and policy makers dropped the ball for potpreneurs.
A National marijuana legalization plan for the US would be ideal for the launch of the American Greenrush but they also have a big problem with the Cartels and Gangs which I beleive the policy pushers are deathly afraid of which the hardcore potpreneurs will achieve the change, one State at a time, which I believe will cause less deaths to sort this out kind of by sneaking it across the line without big fanfare and publicity to identify those pushing for this.
I'm Canadian but those US MSOs, I think, will get traction first although I have noticed a lot of interest from US investors for the beatdown Canadian LPs at firesale prices.
STZ paid enough initially to wake up the Candian greenrush but have continued purchasing or investing in companies of interest at firesale prices.
I don't know what would happen if they plunk down for the rest of the shares of Canopy at these prices. For sure they wouldn't need anybody's vote for approval of whatever they want to do with full control.
STZ, smart and hardcore! I can only hope they remember the investors that paid for all the assets of Canopy and treat them with the same respect as they do STZ shareholders.
glta and dyodd