Acreage Holdings ACRGF

RE:RE:Even a buyout cant lift this garbage.

[Countrygent]

Well your ACRG is hitched to Canopy and Linton now - the 40% premium is coming, based on the exchange ratio and the $2.55 sweetener cash payout.

I think the dilution required for Murphy to pursue his strategy of rolling-up independents state by state was getting too expensive, and now he has access and backing of big money tied to the same strategy.  Like it or not you are now a surrogate Canopy shareholder, subject to currency fluctuations, Canopy’s market valuation, likelihood of approval of the deal (virtually certain?) and likelihood of Federal legalization (seems pretty good and a lot of lobbying muscle now lining up behind it as more States and big operators embrace normalization).

Say $21 US is the average price.  Plus 40% would be $29.40.  Back out $2.55 is $26.85.   Canopy trades at $62.20 CDN right now, or $46.52 US.   0.5818 of a Canopy share is $27.06.  Add back the $2.55 = $29.61.  Remember there are a big number of shareholders who took their shares for much smaller cash invested than the $25 IPO - there were two PP and a lot of $6 shares, plus the owners of franchised roll-ups who have made big money (in ACRG paper) .  

ACRG paper is now much more competitive to dangle in front of unaligned independents in the expansion strategy.

For a 5 month investment, a tied guarantee of 40% plus whatever appreciation Canopy can manage in the time between now and legalization ... complain all you want, the premium is not bad.  I’m happy even if the huge home runs that earlier years betting on weed are no longer available.  

Probably a pretty good buy toady compared to Canopy.

cg