The US is trending towardsa full legalization of the marijuana and hemp industry in the US. It takes very little due diligence to see what is happening. Recent ballot issues where 6 more States legalized rec and/or medical and more following. Huge amounts of shares traded on US exchanges for Canadian LPs in anticipation of the Democrats dealing with this issue that they have put on the agenda to be over-ridden by Mitch McConnel. Canadian LPs investing in US MSOs betting on whatever legislation is needed to swing open the doors for investors who see value in this relatively new industry that has been strangled beyond belief. I'm thinking of the Aphria deal to buy Sweetwater Brewing for $300 million plus which makes me wonder why savvy business people would buy a brewery while brewerys are in decline. They must be seeing a different picture to do this and I expect that the US swinging open the doors for legal rec use or whatever "triggering event" takes place. I daresay that they have high expectations, no pun intended.
This is the Canopy sight so I should at least talk about Canopy and associated companies. Other Canadian lps are also lurking over US MSOs and some even backed out of deals, to keep the peace, and their listings after the NYSE threatened to pull listings and the TSE followed suit despite the fact that rec use marijuana businesses are legal in Canada. Big business has made heavy investments in anticipation of a triggering event to happen at the Federal political level in the US to let this rip. Constellation Brands is the major shareholder of Canopy and Canopy is destined to assume the assetts of Acreage Holdings which is the largest US MSO after the said triggering event. Constellation took the wheel of Canopy for $5 billion. Canopy has invested $330 million to assume controlling interest in Acreage and Acreage value has been beat down badly as though it isn't going to happen. There's a couple of mega unicorns that are saying otherwise and they have the financing to make it happen which I can't say for all of them. US legalization will allow access to very important tools like banking and fear free brokering so investors and companies seeking operations capital will have access to it without paying usury rates and also take the threat of criminal prosecution and seizure of investments off the table so US investors can partake with a larger security blanket than just State law protection.
This trending is becoming clearer and clearer and hopefully the Democrats deal with descheduling and SAFE banking to let out the reigns and allow this new vice to flourish.
The Acreage fixed share deal is going to allow increased sharefloat for Canopy shares which are going to be in short supply when this triggers and US investors are on the hunt to be a part of the Canopy Growth, tail to snout marijuana and hemp company, leading the world and hopeful investors to solid gains. glta and dyodd