RE:RE:hEY ALL YOU BLIND IDIOTSJodiangel17 wrote: BigBagofWeed wrote: The 5B is for development of drinks and their merchandising not buying weed companies. Constellation runs the show on their money not Canopy.
Did you really just say this?! :/ :/ :/ Hahahaha!!!! Why would CB give them 5bil for R&D instead of keeping it and using it themselves for that...and merchandise...really? Lmao!!!
OMG Jodi you really have no idea how the constellation deal works do you? They didnt give the $5B for R&D, they gave the $5B to secure the supply chain and for extra spending money to seek other opportunties outside beverages. In return, STZ gets a low cost secured pipeline of CBD inputs (bye bye margins).
By basically forcing WEED into lower margins... STZ had to sweeten the deal by jacking their valuation and giving them the spending money to maintain the "dominant first to market" persona Canopy was recognized for. It essentially allowed STZ to defend its investment for longer while it figures out the formualation equation and supply chain logistics.