RE:RE:Keep the important stuff in viewEvery consolidation that I have ever been saddled with has driven my investment in to the ground.
The reverse split happens and the price is supposed to be on par so that there is no loss of value but EVERY one that I got caught up in tanked the shareprice back to the preconsolidation share price and ultimately failed totally or bounced around at pennies while investor's market perception was "failure"!
If you are a new investor considering an investment, I would wait until after the share consolidation and inevitable price tanking that follows.
One poster felt that consolidations are waving the white flag! I think it is an admission of failure where management buys themselves a little time before the lenders force the bankruptcy and seize assets of value.
Canopy was a world leading LP and the new, lean, mean operation simplifies the complexity and allows a company to reduce costs to achieve profits.
Canopy has hung their hope on the US and I don't think STZ is going to walk away from their $5 to 10 billion investment in Canopy and some other Brands of potential.
This doesn't look like them quitting the pot business but as hardcore businesspeople they have set this up such that if the marketmakers can kill this company that STZ will wind up with a shiney new penny that has all the potential that drove Canopy value in the first place to the heights it was.
STZ will continue to rely on the tried and true valuation of profit and loss, not the irrational exuberance that drove valuations of pot companies far beyond real value.
The first investment in Canopy was expensive to the tune of $5 billion Canadian for about 40% of the shares. I don't know what they paid for the next 30% that gave them control but my guess is that it was cheaper. Then they invested in several other pot cos so they are in for the longhaul.
Acreage was originally valued at $4 billion but all the potstocks got rightsize and re-evaluated and STZ guided Canopy to the revisited deal that cost Canopy $38 million to lock up a US MSO and the rest of the deal that is inked is for Canopy to come up with sharecertificates to swap for the Acreage shares.
This is a stumbling point and after watching Klein's interview on BNN today, merging these two entities still has management concerns that it will draw fire from US protectionists and that is clearly holding up the merger.
The US seems to be the best option for Canopy and the other LPs but they are draggin' anchor on the US out of fear of financial repercussions despite Klein saying that Canopy isn't waiting, which seems to be another mixed signal that is holding up hope and progress for Canopy to become Canopy USA.
Klein and his team have covered all the possibilites of how this plays out and what isn't clear is who is going to benefit.
The commonshareholders of Canopy and Acreage stand to lose the most.
I just want the doublespeak from Klein to stop and I want to see the US deal happen as announced!
No fear!
There is a lot of potential for this new vice and pharmaceutical entity that is facing demise from overzealous marketmakers who are willing to destroy it to scoop up the pieces for round 2.
Investors see this, can securities watchdogs see this and can they or will they do anything about it?
glta and dyodd