RE:The Lawsuits are from Ambulance Chasers IMHOBoy, ain't that the truth! For lawyers it is about the billable hours and once they get that hook set, the retainer is the easiest part of the pain process. If they rush to settle your lawsuit, it is like cutting off a body part for a lawyer who don't ever want those billable hours to end.
So, we've got lawyers piling on, coming out of the woodwork and then a TSE delist!
This was going to happen anyways if/when the complicated pre-arranged merger takes place between Canopy and Acreage.
There's a lot of complicated, hard to understand, imaginative wording in place that is supposed to be legal and doable by the management of Canopy who are really under the guidance of Constellation Brands as the largest shareholder.
Acreage shares are supposed to be swapped out for Canopy shares and this is supposed to rise as a new company known as Canopy USA or somesuch.
If the new company conglomeration known as Canopy USA remains publicly traded, I presume that it will require a new symbol and listing along with all the requisite filings and such which are guaranteed to get more confusing and probably delayed than they already are or STZ Constellation, being the major shareholder of the two biggest concerned parties could just revert back to a private company which is very scary for public shareholders who are used to SEC protection and reporting requirements.
For sure the value of the involved companies to the deal have been beaten down so badly that there is doubt about our survival.
Constellation came in to these companies with an accounting principaled business plan and threw irrational exuberance valuations out the window.
Combine that with a marketwide re-evaluation of all the pot preneurs who are dealing with too many players and too much supply which will absolutely have to be dealt with before they can truly appreciate or gain back shareprice value.
Supply and demand is a harsh reckoning as it plays out but the potential of this new vice and pharma industry is rich enough to keep smart investors invested but with a more critical assessment of real values.
I believe we are at the point of serious attrition that is going to snowball the market players and the most likely to survive are those that have garnered most of the revenue and have financial backing.
It is crazy how much money has been blown to build these companies with very little actual profit to justify staying the course and somewhere along the way, this new managment got the sense that they are worth huge wages and renumeration even when they overpay for assets and burn through cash.
Thus the lawsuits for Canopy and it's associates, but stupid, bad managment is hard to nail down to win lawsuits and if the lawyers and lawsuits keep stacking up for that slice of pie, they will be surprised to find only crumbs.
Constellation came in at premium pricing time to become a part of Canopy and that $5 billion added a whole lot of legitimacy to the new vice industry but since then have shown their hardcore business tactics of bottomfeeding for the better investments that are like-minded and possibly complementary to their ambitions of having a cannabinoid affiliate.
They locked in Acreage for peanuts compared to the original assessment value and the addition of shares for control of Canopy was done at firesale prices as the market harshed down on potpreneurs.
They also stayed the course with more investments in other beatendown companies of potential, some related to cannabinoids while others had interesting potential for their products and profit potential.
I know this is a crazy longshot in this confusing new vice marketplace but there is a hardcore major shareholder and moneymaking company that put this all together for some serious investment dollars.
It is my belief that Big Brother Constellation won't back away, but stay the course and that includes more investment because they have huge potential by being invested in revenue producing companies that need tweaking to become profitable.
Constellation are hardcore and will do what it takes to stem the outflow of cash where there is little potential for return. That is what they did with Constellation that is a growing, viable moneymaker that is a publicly traded multi-unicorn that pays dividends regularly to their shareholders.
I guess the question is whether the currently invested players will get to go along for the ride or will we be left at the bus stop holding our empty bags.
We will see very soon whether there is honour, integrity and morals involved in this play.
glta and dyodd