Canopy Growth Corp T.WEED

Idea

[WeedTheNorth]

Is Constellation lending their shares to short hedge funds? If I think completely by motives it makes sense.

They are allowed to replace their warrants with shares bought on the open market. Their warrants are at $50.60 CAD and higher. Logically, you allow your shares to be shorted bringing the price down and you buy the cheaper shares. Then you recall the shares short and you own the company one day, for cheaper than you were planning to pay anyways.

Constellation will own canopy at some point, I can't wait to see how big the final offer to me will be. Inflation is picking up so it'll be more dollars the longer they wait. GL all longs. Thanks west for the line of thought

[WestCoast78]

How would they do that?  How often do they have to disclose /file when purchasing?  Just on quarterlies?  Can they 'slowly' accumulate 88.5 million in a one quarter?  This would be the Summer do it though. Tranche B expires Nov 1 2023, 88.5M units @ $50.4 cad.  Half price is appealing.    Even at $26 average, thats 2.3B.   Would be nice for them to

[WeedTheNorth]

Without a buyout it would literally take every shareholder to actively sell their stock, it just doesn't happen. I'm no expert and I'm still digging but their 13D didn't change between july 2019 and April 2021, their last report. I think the pandemic may have paused their buying ability but why not lend your shares to the market to collect the fee while you gather up your cash?

[WestCoast78]

Follow up.   STZ can only buy 20M units on the open market. https://www.cbrands.com/news/articles/constellation-brands-enters-into-agreement-with-canopy-growth-corporation-to-modify-warrants-and-other-rights

[WeedTheNorth]

The total shares and warrants from this article equal the 281 million listed in their 13D, it doesn't look like they've done any extra buying. Doesn't negate the fact they can make a few percent interest lending those shares though. Maybe they have some income buried in their financials, I'm still planning to check it all out. https://www.globenewswire.com/news-release/2020/05/01

[Oldweed]

I posted a thread I little below this that included a link on STZ management albeit 6 years old it provides insight into STZ investing tactics. If you dig deeper there are more articles of shall we say an interesting perspective.

[WeedTheNorth]

I did see that, I have quite the weekend of digging ahead it seems.