RE:Future OptionsI don't think STZ is going to jeapordize itself anymore than the cash outlay.
That first $5 billion Canadian was a shakeup and legitimizer for the whole pot industry.
Interestingly that STZ invested in a half dozen other good sku companies in the US that could complement their hub and spoke concept with the anchors being WEED and ACRG.
It is going to take a big leap of faith in STZ managerial capability for what they are trying to pull off to merge the two anchors.
I invested in both the anchors, quite heavily because I believed at the time that STZ would continue to finance any shortfalls to get this merger done.
I also anticipated that the US would come up with a better pot legalization effort than they have but they haven't!
I believe that the biggest issue is the black market influence of Cartels and gangs that I believe are preventing this situation of constantly back-burnering the legalization issue because doing a legalization bill could be deadly.
Marijuana is the easiest way to deal with a portion of the Cartel problem and I believe that they have much more influence than the politicians are talking about.
High stakes are high priced and legalizing marijuana in a proper fashion in the US will probably cost some lives but not as many as it is currently costing.
The difference is the calibre of people and we don't want the good people to pay the price but not doing so is pretty much an admission that the cartels are in control, just like down Mexico way.
STZ has it's own interest and their shareholders first and foremost. Writing off Canopy and the $5 billion isn't a huge deal for them and they can always run with Acreage and still merge the other US interests into that infrastructure.
The IP and recipes could already be dealt with from branding deals such that any benefit from those received would be in the write down for WEED and Acreage would still have the rights to them.
STZ already has about 70% of WEED stock and could hit this at the market with a minimal premium and buy it all, I figure, for probably a couple of hundred million dollars at current values, which is a big nothing compared to the $5 billion they put up originally.
Some marketmaker, possibly STZ, or group has had their thumb on the shareprice of WEED/CGC and Acreage A and B have been stuck to the sp of WEED.
Don't forget that STZ made their move with ACRG at very discounted value and their others too, I believe.
They only overpaid for WEED initially, way back in the exciting days of irrational exuberance when all stocks pot were flying high.
We could see that again if the US politicians get off the pot and make this happen.
Or this can continue until most fail and the rich guys swoop in for round 2.
glta and dyodd