RE:RE:RE:Canopy Rivers dealHomestretch4me wrote: It doesn't make sense anyway you slice it.
We could have purchased canopy rivers in its entirety for the price we paid. We still would get everything we already got in this deal..... terrascend, vert Mirabel and Tweed tree lot . We then could have sold off assets of canopy rivers that we weren't interested in and come out smelling like roses probably for half the purchase value of what we paid. This is a head-scratcher for me. The only plausible reasoning for this deal is that they're still going to be
working very closely with canopy Rivers and now they've given them the green light to start acquiring Assets in the US but I'm still perplexed. On the face of it this was a terrible deal for canopy growth and an absolutely amazing deal for canopy Rivers
WestCoast78 wrote: Homestretch4me wrote:
I'm confused by this deal and how it was structured. Canopy growth gave close to three hundred million dollars to canopy Rivers who is market cap is roughly $170 million dollars. For 300 million or maybe 350 million oh, why didn't canopy growth just completely take over canopy Rivers. We already on roughly 27% of the share float and 84% of the vote. Seems like we grossly overpaid for what we got. Can anyone shed some light on this for me?
I dont understand it either. I just did my canopy rivers homework last week after your suggestion. Some are publicly listed, but many arent. So no idea whats on the books. Grabbing River's share of Terrascend is, of course, no brainer. I suppose Vert Mirabel, can produce what Canopy needs, as far as quality and quantity. Which explains the closing of the other greenhouse earlier this month. D.K also mentioned on the Conf call, that they would be unwinding some legacy investments. I should have guessed.
My interpretation: We took the best assests for us, ripped the band off, cut the dead weight of the duds over there. On Nov 19, Jason Ackerman, the CEO of TER, put out forward guidance for 2021, revenues 360 M CAD and Ebitda of 18M. Thats more than double their 2020 rev's. Big big runway with them, with N.J just going adult use. Now we have 21% of them.
Thats my best guess anyway.
working very closely with canopy Rivers and now they've given them the green light to start acquiring Assets in the US imho you hit tha nail on the head. Rivers CEO said they were dying to enter the states market since forever . They want to de list, change their name and head states side .
Like you said i think Canopy let them off tha leash to go hunt for oportunities and possibly re-visit a partnership down the road if they like what they see.
The title of the article- Canopy playing chess with the U.S cannabis sector says it all. We have a pawn island built up over there once legal .
Who knows maybe the new rivers does some dealings with Acreage down the road...
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