RE:The Acquisition Files - ACB & CanopyTheDirtyNorth wrote: Acquisition, JV, & Licensing are obviously a hot topic here. I've made my opinions known recently that Canopy is unlikely until or unless US legislation changes to allow them to not run contrary to US federal law (and risk being delisted by the NYSE). I've also stated my case as to why I believe that ACB, TGOD, & XLY are likelier options for pure acquisition (we can JV or license to anyone in Canada really, which are the more appealing option to be honest).
But this brings me to a quick snapshot of two spin off venture capital firms and what they might mean for Tinley.
Canopy is in the process of spinning off Canopy Rivers, which is meant to be an arms length venture capital firm identying strategic international investment opportunities for Canopy. This would be the type of firm that would provide liquidity (similar to the streaming that XLY started doing and CRZ currently does) to start ups in exchange for future production, a cut of future profits, etc. Where this hits a brick wall (at least in the short term) is that they're trading on the TSXV, which is owned and controlled by the TMX group, so we have all the same restrictions in place that d*cked Aphria over earlier this year regarding their US investments.
Which brings me to Aurora Australis. The first differentiating factor here is that Australis is set to trade on the CSE, which as we should all know by now, DGAF. This takes the cuffs off as far as US investment goes. It does mean that access to outside capital will be limited compared to a TSXV listing (the don't call it uplisting for nothing), but it definitely positions Australis to get involved with US operating companies that could offer interesting opportunities for ACB. Companies like Tinley.
If we're playing 6 degrees of Kevin Bacon for a moment, let's remember that Tinley's first institutional backer was Quinsam Capital , and Terry Booth sits on the board at Quinsam. So Terry, who is in a position to know Tinley's operations as well or better than any major cannabis industry CEO is spinning off a venture capital firm specifically meant to identify and invest in US plays in the same period of time that Tinley is widely expected to be JV'ing or Licensing it's unique line of cannabis beverages with a Canadian LP.
It's not proof, but it's interesting none the less. A company with M&A in it's genetics, who has yet to publicly announce beverage plans, that already owns a scalable distribution network that is accustomed to dealing with bottled beverage products with strict regulations on them, that would be able to provide every milligram of product for both T27 and Hemplify completely in house, has created a US focused venture capital firm immune from TMX regulations in the same time period that Tinley would be looking to finalize a deal with a Canadian LP. What better way to enter into a trial marriage with Tinley than to have a spin off buy a small chunk of the company (say 5-10%) at a relatively minor mark up from current SP, at the same time the multi billion dollar parent signs a JV or Licensing deal to release the product in Canada next October.
Aurora Australis will list on the CSE by the end of September, per the most recent NR.
Bump