Canopy Growth Corp T.WEED

Reverse Split Canopy

[Apprentice]

I was just wondering if there is an official information about the so called "confirmed" RS from Canopy and typed it in.

What I found was a price prediction for 2024 short above $13 ?

Is this after a split or is this the "comeback"?

[Apprentice]

https://gov.capital/stock/cgc-stock/

[quinlash]

Any current price targets you are seeing will be based on today's data.  The proposed R/S is in order to bring the SP back up over $1 so that it complies with the NASDAQ listing requirements.  The R/S is being voted on in about a month's time (Sept 25th) if the SP goes up over a dollar by then we may see the company either not perform a R/S or use the lower end of the proposed

[Apprentice]

That helps a lot - Thanks 

[quinlash]

No worries, glad to help but don't take anyone's word on anything from a stock forum, research it yourself, nothing will beat your own research (as long as you do it well).

[Pedal2themetal7]

Let's say an investor has 10,000 shares, with a split of 15,your share count is now 666, with a share price of  $8.25, and the same balance sheet. Split of 10, gives you 1000 shares, with a share price of  $5.50. Split of 5, gives you 2000 shares, with a share price of of $2.75. Only the investor share count and the share price changes, the financials don't change. 

[quinlash]

Information avaliable indicates that the company has enough funds on hand to make it for quiet sometime in consideration of actual cash needs and considering what expenses were actually related to asset value write downs vs actual cash used to fund the operation.   They have been launching new products, these too will add incremental sales and revenue numbers going forward.  

[Oldweed]

For me this will be a pretty straight fwd decision to hold CGC or sell, based on what happens with Boisteel. If CGC sells it to STZ them that will be the warning shot of either STZ taking its piece and selling off the rest. If STZ keeps BIO in the CGC fold then that is the sign they are committed and intend to back CGC as a division.

[Oldweed]

Keeping in mind STZ has all the numbers, projections, politicians, and sector knowledge, if they continue to commit, then so will I.

[quinlash]

STZ has something in the area of $4 Billion invested in Canopy so I don't see them walking away that this late in the game.  Canopy may have turned a good corner based on the last fincancial report and STZ is likely taking that report into serious consideration for their next move.  IMHO, if STZ buys BioSteel then it is likely doing so in order to inject cash into Canopy without

[Oldweed]

I agree, STZ will not want to see Biosteel going to Tilray. Buying it from CGC to provide cash is very possible in order to avoid further dilution at the current inflection point. It's very hard to distinguish whether they would do it as described above or as I mentioned earlier as a precautionary move. If they inject cash with and keep Bio in the CGC fold then that would be a very strong

[quinlash]

That's a good point actually.  Canopy is likely the only major Cannabis player in the market directly supported by a major Alchole company at the moment.

[Paray99]

Reverse split always comes with Zhit on retail investors face.  most companies after reverse split hit its prior price in few months. That is 1000 shares @$0.40 will be $4 at the time of 10:1 reverse split and then after few months drop to $0.40 or even less.  Reverse split means the company takes away 90 % of investors money to stay alive in the market.