RE:Beginning of the end TLDR.
give it a rest with the essay long posts this junk is finished you lost almost 50% overnight and most analysts are calling for $0
bye bye
geodcan wrote: for most potpreneurs!
This has to happen because there are too many players and too much supply.
The foot-dragging is by design from the US politicians who bring us close to some kind of legalization and then pull it away.
This US legalization process is going to happen one State at a time for safety and security for those that dare to act against the black market Cartel and Gangs.
The price swings are getting greater and judging from the huge amount of shares trading, I am sure there is money being made or some serious loss cutting taking place.
Low prices and too much competition are killing the legal players in a survival race to see who will be left standing.
I expect about 95% failure rate for junior listed companies and that could extend out to LPs and MSOs who are heavily invested in the US decriminalizing or legalizing with some kind of Federal legislation to get everybody on the same page to be bona fide potpreneurs.
Smokeable weed is going to lose ground to value added, nicer forms of consumption and pharma use is going to be profitable.
Swinging the door open to imported weed and hemp would force the Cartels into legality or out of the pot business.
Canada, despite the recent beatdown of their potpreneurs has developed a safe, inspected, unadulterated, traceable line of cannabinoids and because of the legality in Canada have also developed value added skus in all forms that have also been market tested.
That is why STZ became the major shareholder of Canopy and also why they are buying Brands that they like for their US expansion. Those brands they are locking up are choice with money making potential and the plan is a hub and spoke company on US soil called Canopy USA.
Canopy has paid $38 million dollars to take the wheel at Acreage Holdings which is a bargain basement price for a US MSO that Caldini turned around in anticipation of worthy Canopy Brands to be marketed in the US States where Acreage is established. Constellation oversaw Canopy's deal to buy Acreage and could have ordered them to walk from the original evaluation of over $4 billion for Acreage but chewed it down to $38 million or about 10% of the once estimated value.
STZ took the wheel at Canopy and Acreage in addition to 6 or 7 other US based like-minded companies for their US expansion.
Now, we are going to find out where this is going to go. If STZ is trying to get all of the shares they want to drive the price down as low as they can without destroying the company. Remember they have well over $5 billion invested and can rock the market anytime they want just like they did when they coughed up the $5 billion for slightly less than half of Canopy.
185 million shares traded on Friday on the US side and 66 million on the Canadian side, so significant dollars being gambled on STZ being able to pull this off as planned.
I don't think this kind of deal has ever been done before on this scale but Big Brother Constellation are a dividend paying public company that can continue to grease the wheels to keep this train on the tracks for their latest investments and foray into the marijuana and hemp business.
Constellation, I am sure have consulted with their lawyers and bean counters in regards to this deal and Canopy being as ambitious as it is needs to crack that US marketplace.
They think they can do it and Klein is plugging the drain on finances with clear intentions of selling out the losing parts in Canada for their huge International expansion plan for Canopy USA.
They don't look like they are throwing in the towel on these investments.
Remember that Canopy was the company that they all went to school on and Constellation shook up the potential of marijuana business to be a part of it.
I think they will continue to support this investment and resume their leadership role.
dyodd and glta