TSXV:NDVA.H - Post by User
Post by
davgroon May 30, 2023 12:50pm
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Post# 35470553
Canopy Deal is Negative for NDVA Shareholders
Canopy Deal is Negative for NDVA ShareholdersIn my opinion the announced Canopy Growth deal will have a negative impact on the NDVA share price moving forward and I anticipate we will see a new 52-week low as a result.
In essence management just sold 20% of the company at the current highly discounted share price with no premium attached. In the process they have created significant share dilution by adding 37 million additional shares to the float.
Any additional Wana revenue generated by NDVA through sales of edibles to Canopy will be done at highly discounted wholesale pricing versus the normal high retail margins.
I am having a lot of difficulty finding any positives for NDVA shareholders in this transaction and it appears that the market concurs as the bid is currently sitting at C$0.045 (a new 52-week low).