Canopy Growth Corp T.WEED

RE:RE:RE:1 more time.. CANOPY WILL HIT $50-$60 in early 2018

[Viking49]

LuckyCharlie wrote: Cavinsin if your going to do the math for Canopy, you have to use 5.5 million sq/ft of growing space (when construction completed) not 2.5 million sq/ft as you mistakenly did.
Im sure it was an “honest “ mistake!

Canopy has been hyping 5.6 million square feet of growing space but what do they actually own.  
The deal for 1.3M and 1.7M in BC has Canopy growth owning 2/3 of the joint venture. But the property is not owned by the joint venture and is leased. These leasing costs must be absorbed in operational costs. With the level of renovation moneys announced, these  will not be high tech facilities with ample supplemental lighting and automation.  Yields will be sporadic, labour costs higher than LPs that are building high tech greenhouses. Canopy has never mentioned co-Gen or robot automation efforts, which many competitors are embracing.
So the BC effort can be summarized as 3 million square of leased low tech greenhouse production.  All which still needs cultivation licensing before growing starts, then 2 successful crops and a final inspection prior to sales license. So late 2018 maybe.......or 2019.

Now to the new 700,000 sq ft announced in Quebec.  Similar 2/3 of the joint venture and the facility is leased. BUT the Canopy portion is owned by Canopy Growth and Canopy Rivers. The release does not state the split.

Well folks, Canopy Growth only has a 30% equity stake in Canopy Rivers.
70 percent of Canopy Rivers is owned by other hands, not shareholders of Canopy Growth.

 Canopy Growth shareholders need to be aware that their equity stake in this future cannabis production has been watered down. All of Canopy’s financials and news releases can be found at the SEDAR website.  It takes a lot of hours to read all the material but buyer beware.  The headlines sound great but the devil is in the details.