RE:RE:RE:RE:10 million shares traded on FridayActually you are wrong on both points you make. First of all, Canopy does not own any Acreage shares. Canopy owns the right to acquire some or all of the outstanding shares of acreage if a triggering event happens or if Canopy waives the triggering event. Secondly, Canopy must consummate the contract if a triggering event happens, there is no option if a triggering event happens they must fulfill their contractual obligations. Canopy is locked into this deal for 10 years and the only way things can change is if Acreage has to go to Canopy fir more money and Canopy squeezes them into a better deal again. This is not very likely as it appears that Acreage will be EBITDA positive in 2021. Thirdly, there are clauses in the contract that protect Acreage from Canopy purchasing ir partnering with another MSO.
So three swings and three strikes for you. You're out.
Rotaluceps wrote: geodcan wrote: I sold the bulk of my Canopy and had full intentions of getting back in at lower prices but jumped in with both feet on Acreage. Too soon, I might add. Paid too much and even averaged down when Acreage wasn't getting any luvin'. I've got a lot but fearful of putting any more cash into it, even when it flirted with a buck and half. It isn't getting the respect that I think it deserves probably because of the rectifying the sp took. If the deal happened on Friday where Acreage shares got swapped for Canopy shares, there seemed to be a triple in it for investors in the $4 range but the kicker is that Canopy has to do the deal. I just can't see them walking away from it because of the dollars they already have invested for the deal and the fact that they need an Acreage or something similar to hit the ground running when investors lose their fear of the Feds. Canopy has figured out a way to get their brands happening in the US and have already started doing that with branding deals. Canopy got right sized and right priced and Acreage got overdone to the downside imho but the synergys of the two companies is going to be amazing. They both have growing capital secured and Constellation Brands has more to back their investment for success. I wonder how many investors don't understand the clout that these 3 companies will have when the formalities happen? Acreage has most of the US pieces that Canopy is going to need and Canopy has already paid the cash. Now it is just a share swap for Acreage to hang Canopy's name on their efforts. I sense that we are getting very close to this happening soon. glta and dyodd
Yes they could walk away. They still own a good part of ACR and they can just keep the things as they are, if they don't like the performance of ACR, or find better opportunities.
On June 27, 2019, Acreage implemented an arrangement under section 288 of the Business Corporations Act (British Columbia) with Canopy Growth Corporation (“Canopy Growth”), which was subsequently amended on September 23, 2020 (the “Amended Arrangement”). Pursuant to the Amended Arrangement, upon the occurrence (or waiver by Canopy Growth) of changes in federal laws in the United States to permit the general cultivation, distribution and possession of marijuana (as defined in the relevant legislation) or to remove the regulation of such activities from the federal laws of the United States (the “Triggering Event”), Canopy Growth will, subject to the satisfaction or waiver of certain closing conditions, acquire all of the issued and outstanding Class E subordinate voting shares (the “Fixed Shares”) on the basis of 0.3048 of a Canopy Growth share per Fixed Share (following the automatic conversion of the Class F multiple voting shares and subject to adjustment in accordance with the terms of the arrangement agreement entered into between Acreage and Canopy Growth on April 18, 2019, as amended on May 15, 2019 and on September 23, 2020).