RE:RE:RE:RE:RE:PRETTY DECENT VOLUME IN RIGHT DIRECTION I'm a long term investor in Canopy, actually since it was Bedrocan and have followed the twists and turns to the best of my ability.
The only thing I am sure of is that I am confused as to how they are going to pull this acquisition, merger, take-over, consolidation of all of these moving parts to get a Canadian born pot play and work it in to a US holding company Canopy USA LLC.
I know that Canopy shares are going to be exchanged for Acreage A and B class shares and I also understand that STZ are ram-rodding this to get it done. STZ is the largest shareholder of Canopy Growth and show progressive moves, acquisitions and loan deals for other US based like minded pot companies but also sport beverage and other companies of which some are also to be vended in to the Canopy USA holding company.
All of these deals are supposed to streamline the formation of this new company in to the spoke and hub powerhouse that they hope to be.
As a fairly heavily invested Canopy and Acreage shareholder, I sense a turn around point for cannabinoid investments for companies of merit but I am also well aware that there is too much supply and too many players.
Our Canadian LP competitor Tilray is getting positive traction from investors and sadly Canopy's is much less, largely, I believe because of the lack of clarity of how this amalgamation to a Super International Cannabinoid Company is going to happen. Klein and team are keeping this to themselves and after the BioSteel fiasco, I am wondering if the Professionals that are writing these deals really understand what they are doing.
As far as the BioSteel deal, I guess, it is buyer beware and can only offer my own advice of if you don't understand the deal, don't invest in it, but I kind-of got lulled in to this one which I thought was kind of straight forward when I first invested but got really confusing and twisted when the Constellation Brands team got control and abandoned the irrational exuberance sp valuations in favour of good old bean counting principles.
I am interested in hearing informed opinions from long term buy and hold investors that are invested in these two companies as to what is going to happen.
For sure supply and demand needs to be dealt with as well as the US needs to deal with the illegal market to get some control over where this is headed by decree or one State at a time.
This genie isn't going back in the bottle but lack of political will to support this whole new industry suggests that the US is closed for a new competitive vice which to me, is amazing, because Americans are hard-core about business and STZ is rumoured to be the same.
I see the STZ consortium as being full of intention to be formidable in the cannabinoid market but also protect STZ from any repercussions of mixing alcohol and cannabinoids as one company.
STZ seems to be building and supporting the pot biz with recent acquisitions of like minded companies in the US and I believe that they are also going to protect STZ which is a successful multi-unicorn alcohol business that aren't opposed to financing new ventures.
I see company building going on here despite the times and beatdown that marijuana companies are taking.
glta, dyodd and tia.