Every reverse split I have hadthe shareprice of my stock almost immediately reverted back to the pre-consolidation price.
When this happens it is a last resort shot at destroying the public shareholders.
Lenders get first crack at whatever value is left in a destroyed company and preferred shareholders are next.
Public, small investors just get screwed out shares and the public sentiment is such that small investors head for the exit to preserve capital.
It is a double whammy and a huge indicator of big money, lurking, to pounce on small shareholders who want to preserve whatever they can by liquidating their shares.
I doubt that Canopy is in the same position as Tilray was when they squeezed the bejesus out of the shorts because the Tilray big guys owned most of the shares and just stuck together to put a huge double in their pockets.
That deal forced the shorts to come up with $300 per share for what was a $150 per share stock.
Canopy's major shareholder is Constellation STZ and if they vote their shares it is a done deal. They are also a major shareholder of our US MSO Acreage Holdings which is worth pennies despite being all set up for the merger of the two to do business in the US.
That deal is inked and $38 million came out of Canopy coffers and the rest of the deal is Canopy shares which are redeemable for Acreage shares at I Canopy for 3 Acreage fixed shares and 1 for 2 Acreage floating shares so the Acreage shareholders got hugely devalued with that creative deal that was pretty much the same as a consolidation and my guess is that half the shareholders weren't even aware that it happened.
It is about to, the minute they get the new version of Canopy USA.LLC up and running!!!!
Vote no to the consolidation deal just to send a message to STZ, major shareholder of Canopy.
First priority is for Canopy to swap the Acreage shares and secondly, some form of US legalization, in whatever form it comes in.
I theorize that there are too many players and too much supply and there is going to be a lot of hurt for a lot of underfinanced potpreneurs until most have gone broke and supply gets right-sized and the black market supply is dealt with in the US.
Nat Geo has had some great documentaries about the pot biz in the US and the black market probably dominates and there are no politicians that will deal with.
They need Rudy Guliani or somebody similar to take them on because most of them aren't willing to play Cartel stakes.
Vote no, for what it is worth!