RE:RE:FAF annuals
mtd121215 wrote: I think it is more likely that FAF is bought buy canopy as Mettrum was as well. Same CEO who lead Mettrum now leads FAF.
Regulation will change
I doubt that, but everythings possible.
FAF is protected by the deal they have with CT. Aint no LP looking to buy a company that they'll never own 50% of. (Should CT exercise its warrants).
Canopy is doing everything in its power to downsize and become profitable. The current regulations in Canada (as we all know) dont allow for more than 24.99% ownership. So they'd be buying a money losing asset, to push more flower (its possible they narrow that loss gap quite a bit, but doubtfull they would turn it profitable for some time, especially locking themselves out of Ontario). On top of that I dont see the regulations changing, its like allowing Molsons to own the beer stores, its quite a conflict of interest. The current Premier specifically made a move to private ownership to support small business. The other option was a premier who wanted it crown owned, and the other option is the NDP, which is gross and wants to kill most of Ontario's business in the name of "hey look how woke I am" green initiatives. Regulation will certainly change, but to that degree may be years away, and I dont think anyone has the cash to weather that gap or the balls to put up with angry shareholders over recurring EPS losses every quarter.
but it is possible.
The other thing to consider is that any M&A moving forward will likely be at significant discounts to what we saw in the past (when the mettrum deal happened). With the bloodbath of washed up LP's, most grow assets are going for pennies on the dollar. That will certainly leak into the worth of the retailers. I know a few other than us that have done share exchanges with LP's, and you can bet your bottom dollar that as the LP's continue to go under, so too shall the worth of our marketable securities. I think this year will be majorly accredited to the popping of the bubble, when we'll see almost half the market consolodate for pennies on the dollar. We really need some success stories in the sector to return investor confidence and allow for financing to flow back.