kneejerkin' !!!Equity for debt is a good deal for shareholders of record.
20% dilution translated to 40% knackering of shareprice. Overdone, but typical of the company that marketmakers have chosen to hate.\
In my mind this is still a world leader although mum is the word from Klein and team as far as giving us anything to support our shareprice.
I don't think they will walk from their $5 billion investment by STZ initially and more to get control.
Also took the wheel at Acreage for American footprint and secured a half dozen other brands with the intention of a hub and spoke holding company on US soil using the MSO Acreage Holdings which they locked up for pennies to the once estimated value of $4 billion plus some Canopy share certificates.
Nasdaq delisting concerns because we are underqualified because of the beatdown Canopy is getting until this Americanization effort gels into a full launch.\
That is where Canopy shines with market tested skus from their Canadian experience, Big Brother STZ who will, imho, continue to finance this until we regain our reputation as a major cannabinoid player.
All of the other acquisitions of US pot related companies, synergized together, will be formidable, especially on US soil.
STZ's interest is beverages but are also realizing that there's value in the smokeable skus and other edibles plus creams and such.
Cannabinoid infused beverages are in the proverbial no-man's land in direct competition with beverage alcohol with most beverage players taking a serious look at them because of their marketshare depreciating potential to their soft alcohol offerings. The restrictive policies that have happened to the cannabis beverage potential need to be overcome so that the healthier option of thc and cbd infused beverages can be supplied in the already established bar and pub market.
The tangent the law and policy makers took was for potpreneurs to have to set up their own " cannabis only" venues which in retrospect doesn't make any sense at all to duplicate the bricks and mortar to sell an alternative beverage to alcohol.
Cannabinoid beverage guys need to lobby the politicians and maybe make some polticial contributions to get the ear of the politicians who are reluctant to advance the potential of a new vice.
So the latest deal has resulted in more shares in the float, which imho, will be needed when the good, law-abiding US investors that haven't dipped their toes in to the pot market, rush in.
Over 100 million CGC shares traded today which is huge and shows that there are believers in the potential of Canopy and their team by US investors.
Klein is closing off the drain of finances and concentrating on the Canopy/Acreage deal, although almost nil promotion or hand-holding for shareholders to calm the stormy waters.
The Canopy and Acreage merger is in the works and it is complicated to bring International companies together in a market where the pot business is illegal at the Federal level.
Klein and STZ shook the market when they took the wheel at Canopy and oversaw the deal with Acreage as the launchpad for a stable of respected brands to make their bones in that huge US marketplace.
STZ is a 46 billion dollar unicorn that pays a dividend to shareholders and despite their original rush to get Canopy shares, albeit at higher prices than evolved, came back on the cheap for the controlling shares and they were responsible for re-doing the deal that Canopy had for Acreage, valued at over $4 billion, down to $38 million and about 30 million shares of Canopy sharecertificates which cost about the same as printing them.
STZ isn't going to jeapordize Constellation shareholders or the company but will bring hardcore business tactics to Canopy just like they have done with STZ.
The big plan is for Canopy to bring on the huge US marketplace as their latest International expansion plan.
glta and dyodd