RE:RE:RE:Eventual Legalization of Cannabis in the USCannabis producers in Canada are facing one common challenge in terms of profitability with that being Taxes. Canadian reform is overdue (now by months) where the Canadian Federal Government is expected to come forth with new regulations. Canadian Producers have been pushing for lower tax rates which will translate directly to their profits, if / when that should materialize.
US Legalization could be said to be tied up in political games, this may be the easiest way to summarize it as we have an election coming up and either, or both, parties may be trying to delay progress on this front for their own political gain during the election. Regardless we now have 24 US States with Legal Rec and 44 with either Rec or Medical Legalized. Eventually the scales will tip to the majority of US states with legal rec and the Fed will have little to no choice but the Legalize on the Federal Level.
Canopy Growth sold BioSteel in order to cut a financial drain on the business and improve their reports. During interviews it was noted that the company was seeing as much as 50% to 60% of their expenses being due to BioSteel. By selling this off one can (beyond reason) expect notable improvements in the upcoming financial reports. Partial funds from the sale of BioSteel are also expected to go towards exists debt, again another improvement for future reports.
Consolidation of shares on Canopy Growth is a well-beaten-to-death topic on this forum and, as noted numerous times, the Company has a long as Sept of 2024 (according to deepdive) to see the SP over $1 USD to avoid the move. Considering the basic Price to Book Value of the Compnay exceeds this level is it not unreasonable to speculate that the time available will be more than ample to see these targets achieved.
Not to down-play the consolidation concern, we cannot say for sure if the CEO of Canopy Growth will not opt to consolidate prior to Sept of 2024 however there is no pressing need at this time so (again I speculate) that this will not be occurring anywhere in the near to mid-term.
Best Regards,
Q