There's a ton ofnegativity towards Canopy but in all fairness we aren't alone. Most Canadian LPs got some serious re-evaluation after a spectacular run up because it was one of the first that tried to make the dream come true. US MSOs have done the same but maybe not to the degree that happened to the ones with their footprint in Canada.
Canada's potpreneurs had legal rec for adults but got strangled at every turn with over-regulation and a legal structure built out of the more accepted pharma use pot. Our law and policy makers went into over-protection mode with strength of products and possession limits but we did get access at a reasonable price for safe and inspected product of the smoking variety.
US MSOs cranked up their pot businesses, in the States that they could with either Rec use or Pharma use and there is a big enough market there that they saw early profitability but still faced re-evaluation as more and more rushed in. Competion is the battle call for US businessmen to come out and fight over marketshare and they did volley a couple of shots over the bow of Canadians already trying to get a foothold in the US.
International players wanted outright legalization at the Federal level to invest in the US while US players were willing to rely on State law protection which was a hand-shake agreement that the Feds would let State law look after the pot biz.
Intentions by both sides of the border are for free trade such that both parties can do business in each other countries. US buying of Canadian LPs is building sharevolume in anticipation of resolve by law and policy makers on both sides of the border. If you follow the US trades of the Canadian Lps they aren't 10 times the trades on the Canadian exchanges but moving towards it for companies of potential. Not bad considering that US investors have limited banking and brokering and most of them have CSE stock listings for when it is cleared up in the US for rapid listing on US exchanges.
The good and kind, considerate Canadians put their thinking caps on to work around the US legislation and are doing deals with US MSOs to happen in the future when legal concerns are settled. They are also doing branding deals with US pot manufacturers to gain a little ground in anticipation of this morphing into International business with the US included.
, There are a few Canadian companies that went straight for the States and relyed on State Law to protect them while the US potpreneurs listed their companies on Canadian exchanges and are even investing in Canadian LPs, more and more, it seems as we close on some kind of triggering event that will open the doors for marijuana and hemp such that Canadians can compete with US potpreneurs.
This is coming imho but there could be a lot of pain for some underfinanced junior potpreurs because my sense is that pot and grow operations are overdone and can't support themselves;
As usual there will be winners and losers and Canopy is a two stage company. First it was built by a dreamer and then the dream had to face the reality of the accountants and managers that want a return on investment for themselves and shareholders.
Canopy has a couple of irons in the fire with an eye on the big picture of who is going to be at the top of the food chain. We have lined up Acreage Holdings, Terrascend with a hook into GAGE for our US footprint. Acreage is one of the leading MSOs in the US and Canopy has it locked up.
The spending isn't over yet to reign supreme and Canopy has money and a very solid backer in STZ.
glta and dyodd
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