OTCQX:ACRGF - Post by User
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Countrygenton Apr 18, 2019 10:25am
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Post# 29644124
RE:RE:RE:RE:Why is this not up close to 40%
RE:RE:RE:RE:Why is this not up close to 40%
One thing that becomes interesting once you back out the up-front payment is ACRG becomes heavily tied to the probability of Federal legalization - the closer in price to 0.5818 of Canopy’s price, the more certain the market is of Federal legalization, the greater the discount, the more uncertain the market is that the Feds will leave legalization/prohibition to the States and remove Federal prohibitions.
In the meantime, Acreage becomes a kind of half-subsidiary of Canopy with a potentially fixed value tied to Canopy’s moving price. I wonder what the executive remuneration adjustments are in the meantime to keep Kevin and Co. hard at work to expand Canopy and Costellation’s downstream US footprint?
cg