Canopy finally dipped their toes....And dove in........whether it's head first hitting a murky rock on the way down or a complete belly flop which will result in severe scarring for which it won't recover OR "maybe' having gone straight in like a champion Olympic diver with perfect form with just just a tad of splash, just enough to impress the audience watching.......
Which ever of these scenarios it is........remains to be seen....for now. This shouldn't be surprising that this happened and SOMETHING was bound to happen with Acreage Holdings. Everyone who was involved or cared was just waiting to see exactly what would happen. And it was finally made piublic in a grandiose reveal today. With the dire situation the company was facing, and it's extremely disppointing performance in the highly expensive, totally unprofitable and completelt\y messed up muddled Canadian market, the big ole US Of A was the only place left to go......
So they doubled down there......
Whether this was a good move or not.....again......remains to be seen. Even though the Canadian market was highly unprofitable due to riduculously high taxation, an overpaid workforce, a mirad of complex & convoluted regulatory envirnoment, the proliferation of black market pot and so many other negative factors the Canadian market has.......the US market even though a vast improvment for all those factors mentioned above, will be a highly fierce & competetive market to operate in. In current form, it's still too early and not advantageous due to legislation, but if that were to change, it could be a BIG game changer for the company.
With that said though, i STILL don't rec'd folks invest in this space JUST YET. We're still in the late stage of phase 2 of the sector consolidating and there's still too many players with just not enough of a viable market for all. I would personally wait until at least the early stage of phase 3 before actually putting ANY money in this sector. At least to see if Canopy makes it out of phase two. Which as it stands at this moment, is about a 50/50 chance they might. Their debt is still sky high and unsustainable and they won't even stand a chance to make it though without dealing with it asap & completely restucturing the company.
That's about it for now, at least this news explains the crazy & suspect trading over the last 3 months as those in the "know" used their knowledge to play & mess around with the company's stock. Which explain A LOT..............
GLTA