Pros and consKeep in mind that Klein is giving tidbits of encouraging news but the biggest issue that is capping our shareprice is the consolidation proposal that he has moved closer to reality.
It is the easy way out for management and they are all set up to be the receivers of the assets that once were so valuable in the eyes of shareholders.
Sadly the first run of shareholders will be left behind, penniless on their investments in Canopy and Acreage but team Klein will be golden in the eyes of the STZ shareholders because they ran Canopy and Acreage in the ground for the purpose of winding up with the spoils.
If this comes to pass and it seems that this is the intention of the major shareholder, they won't kick the promotion back into gear to reflect the value until the best parts and brands are clearly going to benefit STZ shareholders.
The plan to do business in the US with all of those brands by rto'ing Canopy and Acreage for the synergies that they will have as one company is still on the books but it will be far easier to wipe the slate of straggling shareholders and get straight to launching Canopy USA.LLC on the backs of the first shareholders.
The evidence of action suggests that this is the plan, as dirty as it is, it has become business as usual.
The second huge issue for Canopy and Acreage is that the law of supply and demand is going to force huge failures for a large percentage of the players and that may be where the big backers like Alcohol, Pharma and tobacco return with serious intention.
This is a huge test for the integrity of STZ management!
glta and dyodd