STZ aka Constellation BrandsSTZ is a serious multi-unicorn with a great history of building marketcap andl paying dividends to shareholders. They secured this with an alcohol promotion and distribution business on an International scale.
They were one of the first major beverage alcohol companies to put up $5 billion to cover their azzes for what there future thinkers were telling them that consumers were looking for healthier buzzy options than alcohol. They treated this as a real concern and invested in Canopy Growth as their solution, to be a part of the change rather than on the outside looking in.
They also realized that Canada's cannabinoid business had stalled out and all of those skus that they worked so hard on weren't giving the kind of return they were expecting! Something had to change and the US was crystal balled as where they would be able to generate the kind of numbers that they would need to continue their successful run.
Most investors here don't know very much about what has been done by Constellation as future planning for doing business in the US which is Federally, a nightmare of indecision despite the voters wishes for how the future of cannabis and hemp should proceed.
Make no mistake that there are lots of dollars being made in the US, by gangs and cartels selling illegal drugs but with so many legal companies launching in, in States where pot is legal for rec for adults or for pharma use, has created an untenable situation that the politicians are fearful of dealing with imho because that is the only thing that makes sense to me.
The US pot biz is a freeforall of players that have put the legal players at great risk, not to mention the consumer for the possibility of unadulterated, safe product.
The guidelines are there but all over the map by the different rules in different States and focus has been more on how to capitalize as a government which is taxes, in a playing field with cartels and gangs that don't have any intention of paying taxes.
STZ is driving the marijuana bus through their affiliates, Canopy, Acreage, GAGE, TER and all of the other companies they have invested in, on the qt, for fear of stirring up political protectionism.
This foot dragging for marijuana has gone on long enough and STZ/Constellation have put the US politicians on notice that we are not necessarily going to wait for them to take the bite out of the Fed's heavy hand and will rely on the same State law protection that US MSOs have built profitable companies on.
Fair is Fair and that is a pretty strong message that would be much more actionable if they would just legalize marijuana and hemp at the Federal level and take one more step of allowing it to cross State lines like every other American product consumed in the US.
US politicians don't get in a rush to get anything done, which is a huge part of what is bringing the economy down all over the world.
Savvy investors know that the US launching their greenrush is going to be a silver lining in a black cloud that is drowning out good old viable businesses in the US and ultimately the world economy.
A lot of this downturn in markets across the world is that the politicians have allowed the markets more leeway than they deserve because a good percentage of brokers and banks have lost their integrity and are also in cahoots with government who aren't enforcing fair and equitable trading but ready and willing to penalize the wrong doers for a price, which makes it business as usual.
A lot of investors are savvy to this kind of dereliction of duty by securities and those that are charged with overseeing securites and are refusing to play because the bad guys always win at the expense of investors willing to finance through stock ownership purchases.
The timeframe for Canopy Growth USA LLC division could be anywhere between 6 months or at the latest, I would like to think, the next general election in 2024.
STZ is a lot smarter and calculated than a lot of people think, if they are even aware of their capitalization of their companies of interest investment, that is to say, they jumped in to a lot of their US interests at the beatdown price that has prevailed.
Gutsy or hardcore businesspeople. I think the latter!
The latest deal proposed is STZ working their magic for the best deal that will benefit the parent company STZ and their shareholders. They put $5 billion Canadian where their mouth is to embrace cannabinoids in their future of their beverage company and I can't wait to consume one of our beverages in my regular old watering hole.
Then we will have full launch! In the meantime, I am hoping to get an order fill for WEED while trusting that the shareholders will get fair treatment.
glta and dyodd