RE:Constellation Takeover of CanopyUNLESS I'M WRONG STZ cannot buy more than 20 million shares on the open market until they exercise the warrants.... They have until 2026 to exercise tranche B at $76.68 CDN( which by the way is around the all time SP high just before legalization.)...WITHOUT A DOUBT Canopy Growth will be higher than that by then so IMHO STZ will exercise tranche A ( 88.5 million warrants at $50.43 ) when Canopy SP is above $50.46 to achieve a savings..THEN execise tranche B when SP is above $76.68....
THEREFORE UNLESS I'M WRONG...STZ CANNOT aquire enough shares to take control UNTIL both tranches are exercised. THEY cannot buy the shares for a takeover until SP goes above $76.68, THE TRANCHES expire in 2026, OR they renogiate the terms of a takeover that must get shareholder approval...
Now I don't see STZ to be in any hurry unless the Acreage deal goes through, which of course is dependant upon U.S Federal decriminalization of pot,. Once that happens STZ will move in exercise the warrants and procede with the takeover...SO MINIMUM takeover SP IMHO would be higher than the $76.68 warrants as that would set the bar for the premium to be paid for a complete takeover.