A big part of the sad case of WEED islack of information from management
Has me wondering why in view of the steady decline in shareprice.
Could Klein be the marketmaker or in cahoots with the marketmakers?
The news we do get is about solidifying relationships with selected investments and stopping the financial drain in Canada.
It would seem that the merging of Canopy and Acreage Holdings is on track, despite the near impossibility that I sense in regards to pulling this off, but Constellation are hardcore and major shareholders of Canopy.
While the shareprice continues to feel and respond to downward pressure, Acreage's too, which is capped by the deal in waiting between Canopy and Acreage where Canopy supplies shares of Canopy in exchange for shares of Acreage A and B.
That was originally estimated to be worth $4.2 billion but because of the state of dissaray in the marijuana market, Klein triggered the walk away clause or renegotiation which was what happened and the trigger price became $38 million to Acreage and we are waiting for this deal to complete.
Constellation is aware of the decimated shareprice of Canopy and Acreage but are still buying in to or bankrolling with loans, some of their new interests that they expect to pull into their new Company encompassing Canopy into Acreage for taking advantage of their infrastructure and multi state footprint with a fresh new name for the new effort.
That id is Canopy USA and the sooner the better, as far as I am concerned to allay the fears that I have that they can pull this off.
Constellation stock is holding up very well and the reality is that after their $5 billion initial investment in Canopy, everything else they have invested in to bring under the Canopy has been at firesale price.
I doubt that they will merge Constellation with Canopy USA because Constellation is banging on all cylinders and I am not sure how much control or influence they have to support the value of Canopy or the willingness to do it, if in fact they are the marektmaker.
Neverless, Constellation are very capable successful management that reward their shareholders with dividends and seem to be a viable, profitable operation.
All of the major players involved are taking that winner take all attitude and almost all are getting rightsized and re-evaluated.
Again, there is too much supply and too many players and that has to correct.
Some form of Federal descheduling/legalization bill for all of the US states would be best while SAFE banking might give a little bump to shareprice of the better potpreneurs.
Constellation has their own financing branch and I beleive will continue to finance this merger effort to wait out the heavy attrition that is coming to publicly traded marijuana companies in North America.
There has been hints that Acreage is close to profitability and hope that branding deals with Canopy could tip the scale favorably for the shareprice.
I have read nrs that indicate Canopy is recruiting value added capability to keep the popular skus in the marketplace while trimming their own manufacturing to cut the financial drain on Canopy.
Lawyers coming out of the woodwork is never good but it seems they are mostly interested in shareholders that have $500,000 losses or greater.
Can Canopy Growth lock in a footprint in the US as designed by Constellation managment and will Constellation continue to finance this to the point of no-hope or brand new Canopy USA, MSO!
https://www.canopygrowth.com/investors/news-releases/canopy-growth-files-revised-proxy-statement/