The truth about share dilution.To put share dilution in its proper context. Issuing shares to purchase a company isn't dilution if the value of the assets the company gets in return is equal to the shares being issued. And further to my point, if the assets ACB gets in return are of more value than the shares they issued then that adds value to each share and is the opposite of dilution. Issuing shares to grow is necessary. The only way to avoid dilution is not to grow. Canopy diluted their share base BIG time when they doubled their share count to sell half the company to Constellation. The only difference is Canopy got $ for the new shares that they issued instead of a bought company. Canopy sold their shares cheap to Constellation so that could be looked at as share dilution. I view issuing shares to buy companies very differently (and more positively) than issuing shares to raise capital. By issuing shares to grow the company, ACB has cemented the fact that they are viable and relevant in the future. Other companies that haven't grown so aggressively have not secured their future. ACB will very likely start a share buy back program in several years. But what no company can do is go back in time to grow their company. There's only one beginning to a brand new sector and if you don't grow fast and grab market share, you will risk becoming irrelevant.
EOM
glta
harry