CSE:ACRG.A.U - Post by User
Post by
geodcanon Jan 01, 2022 5:21pm
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Post# 34276544
B shares floating are
B shares floating areredeemable at the option of Canopy for a minimum of $6.42. They last traded for $1.17!
The idea was that 30% of the Acreage shares would float with the market.
The fixed Acreage shares would convert to Canopy shares at 3 will get you 1 Canopy share which was running at about a double but declined a little lately as Canopy is still getting re-valued by the market.
The biggest fly in the ointment is the agreement has moving parts reliant on expectations of US legalization of rec pot for adult use.
Ideally, new legislation with Federal legislation covering all of the States and Territories of the US with the same rules applicable to all potpreneurs, that is to say that it is same rules for all players and striking the current rules for Interstate transfer of thc and thc skus. Legalization would open the doors for banking, lending, brokering which US pot investors don't have at present but are still building formidable pharma and rec pot businesses by navigating the existing rules in the legal States.
I've been trying to generate some opinion on how other Canopy/Acreage investors think this will unfold.
I see the need for Canopy to have a US MSO so they can rapidly plant their flag on US soil when the threat of persecution and prosecution is dealt with. US politicians could do a blanket bill to deal with all of the concerns of interested parties and clear up all of the complications and differences between the States with one set of rules for all. There have been several bills tabled to deal with most of the issues with an eye on clearing up the confusion surrounding allowing a new legal vice on US soil.
Canopy needs an Acreage or similar MSO to remain in a leadership role in the greenrush. I envision a universal set of rules that will simplify and aid the growth of potpreneurs on US soil. With that Canopy will convert 70% of Acreage fixed shares to Canopy and there will be International interest and competiton striving for leadership in the US greenrush. Canopy shares will appreciate accordingly and I see us matching or exceeding our old highs or higher. The US investors that didn't work around existing legislation to be invested in pot companies with good potential will pile in and continue to buy millions of shares of Canopy and they will be in short supply even with the float increase for Canopy printing shares to convert Acreage shares.
I imagine that the Acreage floating shares will rise accordingly because they are the same company as Acreage fixed and under the same management. At the last posted shareprice $1.17 Acreage floating shares will get you a Canopy share worth $6.42 all in US currency.
I can't believe that investors aren't screaming this from the rooftops. There is a lot of incentive for new and existing shareholders who believe this creative, futuristic deal will happen in one momentous occasion or one State at a time.
I guess they could revisit the deal again but I think Canopy will honour the deal as it is now. Canopy is a forerunner in the greatest greenrush the world is going to see and we have tried and developed some branded skus in Canada that are destined for US shelves and consumers.
Fingers crossed for US politicians taking care of Federal decriminalization and enabling all of the other tools of business that all the other companies are privy to. Level playing field with alcohol is only fair!
glta and dyodd