RE:Canopy Growth ($CGC) Accelerates Growth Into US MarketMomentous news! I noticed that the Acreage floating shares got sacrificed harshly. Investors liked the brave move by Canopy to be a first major LP to barge into the US market after foresaking the Canadian market as a lost cause in the current climate.
This just proves that the States is the big enchilada and it will be interesting to see who or how many other non US potpreneurs will follow suit.
Once more Canopy/Constellation swerved to test the political and legal climate for our type of business in the US.
My guess is that they feel pretty confident and maybe a little desperate to capitalize on their bold moves to do these option deals and moreso to keep revisiting and rewriting them despite their poor performance while waiting for politics and legislation catch up to this new vice.
We will get to see if fairplay gets over-ridden by protectionist moves by existing US MSOs. We will also get to see if the original investors will be remembered and rewarded enough to make them whole for Acreage shareholders.
Jmho that Acreage has done well to set themselves up to near profitability while the shareprice kept getting driven down to ridiculous lows. Canopy did several deals to align themselves with US pot and hemp companies in anticipation of this move of merging Acreage and the other interests under the Canopy umbrella.
I have never seen investors that don't seem to realize the forward looking plans and efforts made by Canopy to lock up access and ultimately control of US based businesses that show so much promise for their skus.
I daresay that Canopy turned into a testing ground for a couple of hundred skus that have been cherrypicked for our US business plan.
In my mind Canopy is still the leading pot and hemp company and all of that US MSO black ink is going to be challenged when Canopy's well layed and forward looking plans can be a serious competitor, on level ground with the US players.
I am not sure what Constellation is up to with one more layer of another company launch to remove themselves, legally by some kind of transfer of their current Canopy shares to a new listing or launch, but they are the big Kahuna money maker that shook the whole greenrush with some serious dollars to open a lot of eyes and wallets.
My guess is that they will continue to support their initial investment while striving for a return which should be imminent if this latest move to the US market comes off without a hitch.
Remember that Acreage is still a segway to Canopy shares, although I think that the fixed shares are looking better and the floating shares, not so much anymore.
There is also a lot of dilution of sharefloat on the horizon for Canopy shares. I saw that the expectation is for another 110 million shares to be printed to swap for Canopy's US deals to assume their best choices.
Back of the envelope calculation is that this is about 25% more shares for 25% more shareprice appreciation which leaves me crossing fingers and toes that Canopy launches back to its old highs of $70 which I believe could still happen.
I have been watching the US midterms closely and close is the name of the game. Sleepy Joe has announced that he wants to see movement towards US legalization hopefully that non-US companies will trust and feel safe planting flags and hanging shingles on storefronts and other associated businesses in the States.
Of course politics takes time to promote but they have enough progressive bills that have been tabled and approved unti they stall out at the senate to say that they have good concepts of what they need to do to support a new vice revenue generator.
Keep your eyes on the other LPs and the US MSOs to see what shareholders think for the future.
I am reconsidering raising my bid for a couple of thousand less shares of Canopy and haven't even perused the shareprice of some of the other US companies that Canopy has options with to see how they are doing.
Kleins speaks tonight!!!???
I would say that he has honoured another revisited deal that some of the market likes but not the shareholders of the Acreage floating shares who it looks like are going to get screwed and not in a good way.