How much control does management haveover the shareprice of the involved companies for the Canopy/STZ/Acreage deal.
I included STZ because they are the major shareholder because of the hardcore business move to want to become a big part of Canopy Growth where they voted to spend $5 billion C dollars for a good chunk of Canopy.
They didn't stop there but took a step back to view the effect of what they did. That was about the time that Canopy's marketcap shot up to over $20 billion, almost matching the marketcap of STZ.
They moved forward to be the major shareholder of Canopy and also oversaw the revisit to the $4 billion deal that Canopy inked with Acreage Holdings. That deal could be walked from or renegotiated which it was, down to $38 million dollars because the downdraft took Acreage to the critical zone. It also caused a serious re-evaluation to Canopy and none of the potpreneurs escaped unscathed.
STZ stayed the course and picked up other like-minded pot shares for companies that showed promise like Terrascend, Gage, Jetty, Stors and Bickell, Wana and Martha Stewart, for their hot brand potential and they did this while there was a serious tanking going on across the cannabinoid field.
Billions of dollars fell off the marketcap of Canopy and Acreage as well as most competitors but not STZ whose recent marketcap was up about $30 million.
So STZ shareholders liked what STZ was doing enough to pay more per share which translated to an increased marketcap.
STZ's plan is to take the best of Canopy Growth Brands to the US marketplace and do it through Acreage Holdings which is an active US MSO that has been all set up to be vended in to a new holding company called Canopy USA.
Jmho, but there is value in these beatdown STZ acquisitions that will be regenerated when they cross the t's and dot the i's. My best guess is that this will take longer than expected or wished but the end result will be a very formidable cannabinoid company doing business in that Great US marketplace, bringing market-tested brands in to Acreage's group of skus.
I don't know how much influence big players had on the shareprice of potpreneurs but they all needed to be re-evaluated because a lot of them got to crazy multiples of any kind of revenue that they could manage.
For sure STZ stayed the course, had a plan to execute and carried on to do that.
It is looking like all-in time for serious contenders to dominate this field and the ability to raise operating funds to ride out the huge attrition that is starting to happen to get supply and demand and the amount of players in balance.
STZ is a serious company worth about $46 billion marketcap who take care of their shareholders with sp appreciation and dividends.
They decided to invest in the cannabinoid business because they smell profits for the survivors, in the future.
The current shareprice of Canopy looks cheap to me for the potential upside if they can complete the US expansion plan.
Canopy was a leading LP in Canada and other countries but are focused on the US marketplace right now.
glta and dyodd