Current affairs of the worldhave left potpreneurs wondering what happened to their investments as we approach an inevitable correction to the economy as our political pundits wrestle with unchartered territory of the aftermath of covid and free running printing presses that printed massive amounts of value that was handed to citizens to keep from utter financial collapse.
Paid holidays are over and the economy is trying to convince labour to go back to work which might give weight to Bidens open border policy to supply labour to get the US economy back on track.
The stage is set, imho, for some serious right sizing to World business expectations as the good times are facing the reality of tightened monetary policy after the free-for-all that got us through the covid experience.
Marijuana lost it's lustre and multi-bagger gains as the market got flooded with newstarts, potpreneurs and value-added potpreneurs who smelled easy money.
It was great for awhile and latecomers continued to pile in and drop trowsers to stay afloat which only compounded the fact that oversupply was killing profit potential. Too many players, too much pot and downline skus and too much overinvestment by overenthusiastic players, Canopy included.
STZ shook the investment world awake when they ponied up $5 billion C for Canopy, done at peak times when overpaying for pot investments was commonplace and seemed non-injurious as pot listings continued to increase sharevalue with no relation to actual profit.
Now STZ is in the driver's seat at Canopy and also have infiltrated Acreage Holdings which is Canopy's segway for doing business in the US which has turned out to be more desirable than Canada with it's first strike legalization for adult use and pharma use continues.
Much different, more businesslike approach with the multi-unicorn STZ taking the reigns as they lean towards moving towards profits rather than the irrational exuberance that took the shareprice of most potpreneurs beyond anything reasonable or logical.
STZ has a big plan in the works where they launch a new US company CGC USA where they intend to incorporate WEED and Acreage Holdings into one company, originally a deal valued at $4.3 billion dollars but renegotiated down to $38 million under STZ's guidance due to the fact that shareprices had dropped so low that they could have just walked away from the deal but apparently they were still interested but at a much discounted price. Acreage was for all intents and purposes, broke but on the mend with different management, appointed by STZ to fulfill their objective of having a US MSO waiting in the wings for a time to launch that at one time required some form of decriminalization by US lawmakers, but isn't a major issue anymore, apparently.
At any rate, the wheels are turning for a takeover of Acreage by Canopy with intent to be a major US MSO and it was STZ that gave this deal the direction and purpose to be something great when it all comes together.
Acreage shareholders took the salvage option which was a huge discount for most, in the hopes that this comes together under the guidance and hardcore business ethics of STZ who have also picked up a half dozen other US interests, that I believe are also to be vended into the new listing CGC USA.
Shareholders voted yes in the hope that under STZ's direction this is going to come together as a formidable US MSO potpreneur capitalizing on their sku roster, IP and market knowledge of what was successful in Canada.
Can't help but notice, as we plug the cash drain in Canada that there is recent nrs of launching new infused beverage skus in Canada as they also do branding deals for those brands to cross the border to be a part of CGC USA.
A lot of trust and hope that STZ can make their investments into the marijuana and hemp world through these companies, thrive and that their success will make its way to commonshareholders to the same degree as afflicted the shareprices of these once popular companies.
Potpreneurs have to temper their expectations as there is huge attrition to come in their investments because there are too many players, too much pot and almost zero forward political movement to give potpreneurs a level playing field with beverage alcohol.
Mistakes were made with Canopy but hopefully Americanization and more profit orientated management can take all of the assets and make them formidable again.
glta and dyodd