Thanks for this.
CROP is a super value at this discounted share price.
We will turn the corner soon.
So many things in play ... potential catalysts are numerous.
I was hoping for share price take off by now ... but it will come soon!
$ACB
Aurora Cannabis' market value increased by
C$1.3 Billion on October 15th alone.
$WEED
Canopy Growth's market value increased by ~
C$3 Billion on October 15th alone....
(
assuming pro forma shares of 339.25 M)....
$TLRY
Tilray's market cap +
C$1.6 billion Can shareholders see how easy it would be for $WEED or $TLRY or $ACB or $APH or $CRON or $TRST or $MRMD or $HEXO or $TGOD to takeout (acquire) CROP at a 5x 2019 sales multiple? If C$40 M in 2019 sales, a C$200 M takeout....
CROP's market cap =
C$56 M.... M&A is going to get hot and heavy next year, if not sooner!
The top 50 U.S. & Canadian #cannabis names have a total Enterprise Value [market cap + debt - cash] of
C$96.5 Billion, that's an average of
C$1.9 billion per company (although heavily weighted towards the top 3)
Tilray -
C$20.2 billion EV, EV/trailing 12-month (TTM) sales =
557x Canopy Growth -
C$19.85 billion EV, EV/TTM sales =
226x Aurora Cannabis -
C$14.5 billion EV, Ev/TTM sales =
263x All I'm looking for is a 5x 2019 sales takeout of CROP on C$40 M (or more) of sales in 2019. Assuming 20% equity dilution in the next 6-9 monhts, (
I'm just guessing a dilution %, I assume some equity issuance even if only from the exercise of warrants/options.... I have no idea what mgmt. is thinking). That would imply a share price of about C$1.42.....
The awesome thing about a takeout is that one's price target get's realized by the actual takeout itself, the share price ceases to trade at a discount to a prospective price, it happens and one gets paid out....
| Assuming 5x 2019 EV/Sales takeout multiple |
2019 sales | | equity dilution | |
CAD$ M | 10% | 20% | 30% |
$20 | 0.77 | 0.71 | 0.65 |
$30 | 1.16 | 1.06 | 0.98 |
$40 | $1.55 | $1.42 | $1.31 |
$50 | 1.93 | 1.77 | 1.64 |
$60 | 2.32 | 2.13 | 1.96 |
$70 | 2.71 | 2.48 | 2.29 |
$80 | 3.09 | 2.84 | 2.62 |