Side Note (Hedging Opportunities to Come)One reason Canopy Growth is so attractive for institutional buyers, is the hedging derivitive products (options) availablie and liquidity that comes with being on a major exchange.
This allows for sophisticated investors to not only de-risk their exposure to the extreme volatitily this sector brings, but also collect a healthy income stream along the way as we wait for the secular growth trends to unfold.
If you are cofident that WMD will be able to execute and generate sales/revenues in the 100's of millions, then it is only a matter of time before they are granted access to more mature exchanges that only institutional investors are allowed to invest in. (That in of itself is huge wall of money in the waiting)
Still being on the venture exchange, at this particular monent for the company, creates a massive arbitrage opportunity as the share price remains ineffiecient to the fundamentals.
It is also allowing long term oriented investors to accumaute massive share counts that can later be used as collateral when heding products arrive.
For instance, if you are long 100,000 shares, that would equate to 1,000 contracts you could sell covered calls on without the risk of margin calls, weekly.
With the volatility in the sector, you are able to sell 0.25c to 0.45c covered calls and collect $25 to $45 on each contract weekly.
At 1,000 contracts, that would equate to $25,000 to $45,000/ week in additional income to a portfolio.
Anybody who has owned Canopy since the single degits has/can do this. It's one reason why it will continue to attract big money to its equity.
With WMD's potential, not only are you going to get the massive capital gains that come with a $1B market cap valuation, but you also get to look forward to massive call premiums as additonal income.
This is just another reason to be patient as this story and success of this company unfolds.