RE:Dan Crospy BioSteel I never reall thought the BioSteel was such a bad idea but like all newstarts, it costs a lot of money to get some traction and for Canopy, dumping out BioSteel was probably the quickest way to curb the drain on finances.
No new start makes positive cash flow. Some take up to 7 years to show black ink.
I guess at one time the Canopy guy thought it was a good investment and it sounds like, given enough time, that it could be!
Losing the Nasdaq listing will probably cause a major drop to Canopy's shareprice and the solution of triggering the consolidation will be worse, at least for the Canopy shareholders and the Acreage shareholders too as they will be cut right out.
The STZ shareholders will probably be partying in the streets.
The proper thing to do is to support the Canopy shareholders and STZ guys will still do ok but it will be a lot more fair to all the shareholders and not just a big winfall for STZ.
STZ had the ballz to strike when things were bad but they also paid dearly for their first buy in.
What I take from all of this is that STZ is continuing to bottomfeed on some of these brands with intentions of vending them in to Canopy USA holding company.
Sadly they can ditch both Canopy and Acreage and still pull this off and the case can be built that that was their intention all along.
Canopy and Acreage could both be killed and the best of what is left would go to the lender and preferred shareholders.
Team Klein will get the aszhole label from the Canopy and Acreage shareholders but STZ will love them.
Klein can go buy himself a tropical island and live happily ever after on that $40 million wage package.
I remember reading that staying the course on the Acreage deal that Canopy had would be the proper thing to do but these guys are no strangers to coming back around for a better deal which was how they got control of Acreage in the first place.
I would feel better if my 200k plus investment was in STZ right now.
glta and dyodd