RE:RE:RE:RE:RE:ConsolidationI see a steady sincere effort by Klein team to plug the cash drain in Canada.
Kudos for that.
Did the BioSteel deal properly disclose pertinent information that the deal was predicated on of did our team hoodwink themselves? Buyer beware!
STZ isn't fearful of the future of pot and hemp judging from their recent acquisitions.
It is dissapointing that they aren't shouting from the rooftops about how all of these acquisitions and loans are going to vend in to the new holding company Canopy USA.LLC.0
I'm guessing that half the investors invested in Canopy and Acreage don't know who the major shareholder is and the plan for pulling these two companies together and what else they are going to vend in. STZ, I guarantee, had a say in revisiting the deal that Canopy had with Acreage to get it dropped to 10% of what it was once valued at. 4 billion down to 38 million. That was a firesale price that STZ as the major shareholder of Canopy figured was too good to pass up.
They moved on the controlling shares of Canopy at much better shareprices than the original $48 per share. That is good business, for STZ.
It also seemed that they financed and purchased a lot of shares of likeminded companies of interest like Wana, Stors and Bickell, Gage and a few others, all at really good discount prices because of the negativety of the whole industry.
Reality is a harsh mistress and none of these companies was making enough to support irrational, exuberant shareprices from back in the days of the 200 baggers.
STZ put up $5 billion Canadian dollars originally for about 40% of Canopy and an option for control.
They are totally focused on stopping the cash drain in Canada and merging Canopy and Acreage in to Canopy USA.LLC.
The lower they can take the shareprice without a total tanking, the stronger it makes the acquisitor because his cash goes further.
Everybody loves a sale and STZ was there early to capitlize on the major downturn. When others were bailing, STZ was buying.
STZ marketcap is doing well as is their shareprice. I believe they will pay the dividend too!
Canopy is on sale right now, at least compared to where I piled in at on my latest investment.
The plan is to take the best of Canopy to the US for the new holding company Canopy USA and expert, hardcore business management comes with from building Constellation Brands which is a well respected, dividend paying company with a history of treating shareholders well.
Time will tell, what happens and it will take more time than what they figure!