TimMcCracken wrote: Jodiangel17 wrote: Jagger1 wrote: Canopy Growth was founded in 2014. The company’s cofounder, Bruce Linton, is still with the company as CEO -- but he only owns 0.036% of the business.
If the founders, entrepreneurs, and leadership behind young, flashy businesses don’t believe in the company enough to hold a significant ownership stake themselves, why should you?
i told others on board that Canopy will fall to 29 or lower and got hell from most here)
What don't you ask Bruce instead of having people theorize about something that had nothing to do with them. Maybe he has a ton of child support to pay and doesn't have extra cash to put into the company. You don't know the guys finances, the guys plans or anything so stop trying to find answers.
I don’t think it is because he doesn’t believe, but his decrease in ownership is in large part due to the dilution over the years.
When I first bought shares of Tweed in February of 2015 there was only 50,000,000 +/- shares outstanding.
Bruce owned 3,621,711 shares which was 7.25% of the company
From 2015 to now he has liquidated 950,000 shares or 26.23% of his holdings.
Selling 950,000 shares generated $8,854,348 for him, so those shares were sold at an average cost of $9.32/ share.
Please note that 400,000 of these shares were sold sub $3/ share back in late June/ early July of 2016 (right before the TSX uplist).
I believe those 400,000 shares were sold to close financing on the Hersey factory (maybe someone else can speak to that).
He still owns 2,671,711 +/- shares on a non dilutive basis is 1.35% and on a dilutive basis 1.23%
Just like that rest of us longs the dilution has decreased his/ our individual ownership percentage. Had the original float of 50,000,000 still been in play Bruce would still hold 5.34% based on 2.6mm +/- shares.
Dilution hurts long run returns ... since February 2015 the stock price has rose 1,474% (unbelievable), but here is where it gets crazy ... the market cap has rose by 6,224% ... as you can see a huge difference. This is why even small amounts of dilution hurt long term returns, however it is difficult to get frustrated when share price returns are still +1,000% in 3 short years.
Based on Bruce still owning 2,671,711 @ $31.94 = a market value of $85,334,449
$85,334,449 + $8,854,348 (cash from shares sold) = $94,188,797 wealth generated from Tweed shares
$85,334,449 (still holding) / $94,188,797 = 90.60%
He has generated $94,188,797 in total ownership from Tweed assets and he is still holding 90.60% of that value.
It is my opinion that he still believes.
I took my numbers from referencing Sedi and my Tweed experience over the past three years ... by all means anyone please feel free to correct/ add input where you see fit.