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Canopy Growth Corp T.WEED

Alternate Symbol(s):  T.WEED.DB | CGC

Canopy Growth Corporation is a cannabis company. It delivers innovative products with a focus on premium and mainstream cannabis brands, including Doja, 7ACRES, Tweed, and Deep Space, in addition to category-defining vaporizer technology made in Germany by Storz & Bickel. The principal activities of the Company are the production, distribution and sale of a diverse range of cannabis and cannabinoid-based products for both adult-use and medical purposes under a portfolio of distinct brands in Canada. Its Canada cannabis segment includes the production, distribution, and sale of a range of cannabis, hemp, and cannabis related products in Canada. International markets cannabis segment includes the production, distribution, and sale of a range of cannabis and hemp products internationally. Storz & Bickel segment includes the production, distribution, and sale of vaporizers. This Works segment includes the production, distribution and sale of beauty, skincare, wellness and sleep products.


TSX:WEED - Post by User

Comment by Homestretch4meon Nov 28, 2020 5:46pm
330 Views
Post# 31995502

RE:RE:10 million shares traded on Friday

RE:RE:10 million shares traded on FridayThat makes no sense at all. Let me try to make it easier for you. I will do all calculations using Canopy's American share price. I'll also use your timeframe of ~8 months.

Starting cash balance of $20000 US April 1st price of Acreage was $2.01 US April 1st price of Canopy was $13.58 US

If you bought Acreage you would have got ~10000 shares of acreage

If you bought canopy you would have got ~1472 shares of canopy.

At today's current stock prices you would have

Canopy $42688
Acreage $40000

So you are correct that currently on paper you are doing better by buying canopy shares but this is pre triggering event. Let's look at the numbers assuming the triggering event happens using these same numbers.

Your 10000 acreage shares would convert to ~3000 canopy shares

3000 $29.00 would equal ~$87000

So the person who invested the $10000 in acreage instead of canopy on April 1st would have 1528 more shares of Canopy than you and $44312 more than you.

So yes currently you are happy with your investment in Canopy but when the triggering event happens you will still be happy but not as happy as the person who bought Acreage.

Let's use the same initial investment at today's prices.

Starting cash of US $20000

Canopy at $29.00 would get you ~690 shares

Acreage at $4.00 would get you ~5000 shares which converts to ~1500 shares of Canopy after the triggering event.

Let's use $100 US canopy share price for comparison.

Your 690 shares of canopy would be worth $69000 while your 1500 shares of canopy(acreage conversion) would be worth $150000.

The risk you take with acreage is that if there is no triggering event in the next 10 years(that is the length of the canopy/acreage contract term) then Canopy could walk away from the deal.

Highly unlikely that a triggering event does not happen during Bidens first term.

Its all about risk tolerance and understanding the canopy/acreage deal

Iminlong wrote: I'm sure you will see Acreage shares move but it's going to be a last minute rush. Look at how much WEED/ CGC have increased since March. I, for one am glad I have focused on WEED as opposed to Acreage these past 8 or 9 months. 


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