RE:RE:RE:AURORA MANAGEMENT IS AMONG THE BEST....I didn't say I don't like dilution. Where did you get that from? I said I don't like the way Aurora has diluted themselves. Aurora has over a billion shares in their quest to be number one and they failed miserably. They have about half the sales of canopy. When Aurora bought cannamed for 3.2 billion dollars they overpaid by a mile. When canopy allowed constellation to invest, us shareholders. got a 40% premium relative to our share price at the time. Pay attention cuz I want you to learn what good dilution is and what bad dilution is. Bad dilution is when you use shares from your company and a grossly overpay for an asset. Good dilution is when you sell shares in your company at a 40% premium, while acquiring a Fortune 500 partner. Your claim that Aurora turned down deals is false. Constellation, Coke, Molson Coors, Altria and I'm sure many more have kicked the tires of Aurora, perform their due diligence and took a pass. Aurora is so desperate for a partnership that they had to hire someone, Nelson putz, to try and get a deal. You say Aurora wants to buy back your shares. That's funny because Aurora has no money. You guys are in a cash crunch and are going to have to dilute further to raise funds just to keep operating. Also, I'm not sure you understand the constellation deal. Constellation is just a shareholder like everyone else. They're not taking any profits any more than any shareholders taking. The percentage of profits they take rely solely on the percentage of shares in the company they own. I don't think you get the magnitude of how much further head canopy is than Aurora. Canopy is destroying Aurora in the Canadian Market as evidenced by the last quarterly reports. Canopy has 4 billion dollars in the bank to continue growing and acquiring while Aurora has nothing in the bank. You have nothing to look forward to other than more dilution and a lower share price. Let's get crazy for a minute and let's say 2 years from now Aurora catches up to canopy in sales and both companies make a profit of a billion dollars for the year. With a current amount of shares Aurora has that would be about a dollar per share profit well canopy would be roughly $3 per share. In 2 years I expect Aurora to have somewhere between 1.5 and 2 billion shares outstanding, they have no choice if they want to survive. Canopy will still be under a billion shares and be way further ahead of Aurora than they are now. I get it though. Initially you didn't have a lot of money to invest and you thought buying a company with a cheaper share price and getting more shares was a better idea. It will be a hard lesson for you to learn.
Pinotblanc wrote: Homestretch4me wrote: My math tells me you hVe over a billion shares, 3 times the number of shares canopy has.
Stop acting like a little kid pumping WEED. You really have a math problem. WEED will be succesful (I owned some before but like ACB better) like a lot of the others. You sound like someone saying that your papa is stronger than mine, read yourself. Weed is already diluted by 9.9% forever but it got $4B. ACB is more diluted but they own companies that will generate a lot of cash. Later ACB will buy back their shares. I don't expect ACB to do it anytime soon and I wouldn't want ACB to do it until the next few years. The profits will compensate the dilution. I expect ACB to acquire more companies or make deals with the cash when it is also very profitable, instead of buying back its shares. Buying back the shares is good for people with short term view for a quick buck. It is personnal and it has no rationality to build a prosperous business.
This happened in an attempt to take the number 1 spot away from canopy. It failed miserably and now your shares are like monopoly money and you have half the sales of canopy.
Your management team made a critical error with the crazy dilution and that is what is preventing a large global partnership. The spread between revenue will get worse as time goes on.
ACB wants the best deal. I prefer a deal like HEXO and Molson did. They created a subsidary company Truss sharing the profit. Truss won't have access of the profit generated by HEXO in the other parts of the business while Constellation will have 9.9% of WEED profit and more when Constellation will take a larger position. How big % Constellation can take more, diluting WEED? How big will it be? Though WEED has $4B. These are two good companies with different approaches. Both companies will do well but I prefer ACB. Stop acting like a kid, you don't look very smart doing so.
The dilution was not done in shares for WEED but in a % of the company lowering your profit from the whole company.
The maker of Corona and Modelo beers in October took a 9.9 percent stake in the Canadian cannabis company. The deal included the option for future investments, giving Constellationa first toehold in an industry the brewer said it expects to soon be legalized across the United States. You don't like dilution? Constellation can take a larger position in WEED and it will. With the big investment of $4B, it is not the time for them to dilute the % in WEED even more now. You are already dilute 9.9%... forever, no chance to buy back. How big will be the next dilution? ACB so far, refused bad deals or refused to sell a big part of the company. It doesn't mean WEED will not be succesful, it will. This is two different approach that a guy with a kid mentallity can't handle.
Also the profit that will be generated by Constellation will take time, since it is estimated that the cannabis will be legalized in about two years, in the US, at the fed level. Even if they decide to do it soon, the process of the legislation will take time like it did in Canada. So I don't expect the profit to be so good, only in Canada, anytime soon. You prefer to be diluted forever, I prefer ACB to buy back their shares keeping the whole company. I don't say it was a bad deal for WEED, they still got $4B. Even the analysts have different views, so let's see in two years how things are going, and stop acting like a kid who is clueless.
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Aurora Cannabis has an enterprise value of about 18 times its projected revenue for the coming 12 months, compared with Canopy's valuation of 36 times forward revenue estimates. On a trailing basis, both companies have price-to-sales ratios of 100 or more, but Canopy remains considerably higher. That, combined with the underperformance from Aurora's stock lately, makes Aurora look like the more attractive candidate from a valuation standpoint.