Who thinks the Acreage deal with Canopy isnot going to happen? I can't believe that Acreage Holdings, billion dollar US Multi-State Operator that has struck a deal with Canopy to be their US segway to forward their International footprint. Serious millions of dollars have traded hands to formulate the deal where Canopy assumes Acreage fixed shares. While I am on that subject, how much arbitrage between the two does it take to find some love in the investor community. If it happened today that such a triggering event took place, $21 US of Acreage fixed shares would net you $33 US worth of Canopy shares. When such an event takes place, my expectation is that those Canopy shares will appreciate to, at minimum, their old time highs or more, which would sweeten the deal even more.
Investors are ignoring this like it is a big money folly that won't happen. My opinion is that there has been a lot of effort put into this for Canopy to choose Acreage, not to mention 100's of millions of dollars for a group of assets that will allow for quick assimilation of Acreage assets to run with the brands and skus that Canopy has built. The US is essential for Canopy to maintain leadership in the greenrush and they chose Acreage because it has the moving parts required. Keep in mind that we are talking 10 times the market in the US compared to Canada which to me means that Canopy USA is going to be huge.
Don't forget that Constellation Brands is a major shareholder of Canopy Growth with the option to take leadership anytime they want. They are a money making monster with some of the best management in the business of beverages. It is no secret that Canopy is very happy with how beverages are doing in Canada and have a huge push on to get them on shelves in the US through branding deals with Acreage Holdings. There are also over 100skus in Canopy's portfolio that Acreage will have access too when Canopy feels safe enough to assume controlling interest in Acreage Holdings.
Takeovers are increasing as players team up to move themselves forward. Canopy has been proactive as opposed to reactive and Constellation Brands was first to throw down in the greenrush with $5 billion to be a major shareholder of Canopy. Investors need to catch the vision of what Constellation is seeing and planning for.
If you are considering investing in Canopy, then Acreage is worth some due diligence but that is jmho. glta and dyodd