Acreage Holdings ACRGF

Healthcare Drug Manufacturers - Major

Acreage Holdings Inc is a vertically integrated, multi-state operator in the cannabis industry. Its business operations include cultivating, processing, distributing and retailing cannabis. The Company derives its revenues from its retail dispensary business where cannabis and cannabis-infused products are sold to consumers. Its geographic segments include New England, Mid-Atlantic, Midwest, West and South.

OTCQX:ACRGF - Post by User

Acreage Holdings

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Post by fortune420on Apr 19, 2019 9:51am

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Post# 29648615

100 million CGC/WEED shares for Acreage. Deal or no deal???

100 million plus CGC/WEED shares for Acreage. Deal or no deal? – Post to Reddit please
At Thursday’s 4pm close that would be 6.25 Billion Canadian. Let’s do the math straight out of the NR:
Approximately 117647058.8 shares (300M/$2.55 a share) plus 58000000 shares plus 5221905 shares equals approximately 180868963.8 shares. Multiply by 0.5818 to get approximately 105229563 shares of Canopy Growth. This is the real cost. To make it easy on everyone just take the daily CGC or WEED sp and multiply by 100M. Canopy would also be just shy of 650 million shares fully diluted (see at the bottom of the page). I got this information from the NR and copied the key parts below. As for full dilution I have used New Cannabis Ventures as it came up first in my search (I already knew it was over 500 million shares anyway because I pay attention...). Do I have this correct? I do not claim to. I am only trying to pay attention to the details and what they really mean. Please get this posted on Reddit so we can figure this out to the penny.

Disclosure: I am no one. I am long on ACB though. I feel that it is more important to be in 24 countries than say 24 dispensaries. EU GMP doesn’t hurt either. Being able to look up their licences makes me feel good about ACB:
https://www.canada.ca/en/health-canada/services/drugs-medication/cannabis/industry-licensees-applicants/licensed-cultivators-processors-sellers.html#a1
Can you find your licence? You need them to make money. Even Aphria has one good one lol....

Acreage Holders (as defined below) will receive an immediate aggregate total payment of US$300 million or approximately US$2.55 per Acreage Subordinate Voting Share (the "Up-Front Cash Premium")

In addition, upon the exercise of the Right, holders of subordinate voting shares of Acreage (the "Acreage Subordinate Voting Shares") will receive 0.5818 of a common share of Canopy Growth (the "Canopy Shares") for each Acreage Subordinate Voting Share held (the "Exchange Ratio")

Upon exercise of the Right, the total consideration payable pursuant to the Transaction is valued at approximately US$3.4 billion on a fully-diluted basis, represents a premium of 41.7% over the 30-day volume weighted average price of the Acreage Subordinate Voting Shares on the Canadian Securities Exchange (the "CSE") ending April 16, 2019 (based on the Exchange Ratio, Up-Front Cash Premium and the 30-day volume weighted average price of Canopy Shares as at April 16, 2019).

· According to the Arrangement, Acreage will be able to issue up to 58,000,000 Acreage Subordinate Voting Shares (implied valuation of US$1.4 billion based on Canopy's closing share price at the Exchange Ratio), together with a further 5,221,905 Acreage Subordinate Voting Shares in respect of certain potential acquisitions, which if the Right is exercised shall become future Canopy Shares, which, combined with an expectation of enhanced liquidity should further accelerate Acreage's ability to fund organic and accretive rapid expansion.

After giving effect to the Transaction, assuming conversion of all securities of Acreage following a Triggering Event, Acreage Holders will hold approximately 12.1% ownership in Canopy Growth (on a pro forma basis) and up to 16.6% if permitted acquisitions are completed prior to the Trigger Event. Pursuant to the Transaction, Acreage is permitted to issue up to an additional 58,000,000 Acreage Subordinate Voting Shares (or the equivalent number of convertible securities), together with a further ‎5,221,905 Acreage Subordinate Voting Shares (or the equivalent number of convertible securities) in respect of certain potential acquisitions by Acreage‎.

If Canopy exercises its right to acquire the shares of Acreage and Constellation were to exercise all of their outstanding Canopy warrants, Constellation's ownership in Canopy is not expected to exceed 50 percent.

Canopy Growth Corp. Stock (TSX: WEED) (NYSE: CGC) - Investor Dashboard from New Cannabis Ventures