Canopy and AcreageCanopy's financials come out on the 5th of August and Acreages on the 9th.
Canopy is privy to profits from branding deals from their American interests that can't be included in their financial reports or won't be included until such time, same as a triggering event where non US interests feel safe from Federal Possesion of Marijuana laws and penalties.
Acreage is close to black ink with their financials and continue to drop losing interests and buy ones with better potential.
I can't believe the lack of awareness of the deal that Canopy has with Acreage and the unwillingness of investors of both companies to even talk about it!
This deal was originally structured way back in the Linton days when money was being thrown around like water with all kinds of pot companies getting ridiculous evaluations. That is where the $4.3 billion dollar evaluation came from for Acreage Holdings US MSO to be rto'd into Canopy Growth.
Time and commonsense prevailed to cause normal accounting fundamentals to re-asses valuations and that is where Canopy re-wrote the deal they had with Acreage and cinched it up with $38 million, a far cry from the first deal.
The fact that Canopy revisited it and re-nogiatied it suggests that they still want what Acreage brings to the equation but at a more reasonable valuation, commensurate with current oversold evaluations and shareprices.
Oversold is the key word that is affecting the shareprices of almost all of the potstocks such that American decriminalization is essential for most of the major players to achieve success and profits. This will happen imo but legislating this in the current political environment in the US could take longer than I'm hoping for and in the meantime, attrition, consolidation, mergers and outright bankruptcies will continue, I believe, until there are only a few well financed potpreneurs left which leaves us with Canopy and their big brother Constellation Brands who I believe, will continue to finance Canopy until the results of US expansion is complete and had a chance to run and profit.
3 Acreage fixed shares will get you 1 share of Canopy which carries a small premium at today's prices and Acreage floating shares currently trading in the dollar range will get you $6 if/when Canopy decides to redeem them. If the don't immediately redeem them they will mirror the Canopy shares imo because they will still be under the control and management of Canopy or maybe even Constellation by that time.
Constellation are a hardcore multi-unicorn who know how to run beverage businesses and make money. They also saw in their crystal ball that they needed to be a part of it rather than on the outside looking in and other major beer, alcohol, pharma and tobacco companies are seeing the same thing that motivated Constellation to pony up $5 billion Canadian for Canopy shares.
Canopy is a long way from done and have a plan, a very big plan that is reliant on US politicians to come up with a workable legal pot bill to launch the biggest greenrush that the world will ever see.
I expect more irrational valuations for this event, just like happened in Canada for this oversold market.
glta and dyodd