RE:RE:Consolidation linkBoth Tilray and WEED will, imho, need to increase their sharefloat for whatever event is considered the retort of the starter pistol for going full bore in the US for cannabinoids.
There are a lot of US investors that aren't invested, so when they feel ok to do so, those shares will very likely be in short supply.
If Canopy goes through with the consolidation it should reduce the float and increase the shareprice to reflect fair value.
My experience with several consolidations of companies that I own shares of is that, very quickly the investor shows their distaste for this action and the shareprice snaps back to the preconsolidation price or worse.
Consolidations have been for me, the deathknell of my investment in the company that took the easy way out to restore sharevalue to maintain a listing.
Canopy is a high profile, past leading contender with a lot of good value that is going unrecognized because of the onslaught of bad news and marketforces that have taken it down.
Klein has taken it upon himself to make it stand on its own and has been dumping the losing assets to stop the financial drain in the hopes of making it desirable but undid all of the moneysaving actions with one consolidation proposal.
I will give one of you 10 to 1 odds to a dollar that, if this consolidation proceeds, the shareprice will drop back to preconsolidation prices and it will put this into receivership and the lenders will scoop up the best pieces, assets, ip and recipes and run it again, maybe even as Canopy USA.LLC.
If they keep it as a public run company they will rightsize the sharefloat to deal with the American investors that will be coming onboard and also have a total change of attitude as far as promoting it.
Team Klein is doing the right thing to Canopy to get it to profitability and in the same breath set it up for a consolidation.
I feel that if they quit with the mixed messaging and come right out and say that the consolidation is the very last option and continue with the stream of good news that the shareprice could double overnight, given that we have been told the losses are just about curtailed.
Also, not being able to include revenue and profits from Acreage and TER and the other brands that we have hooks in to will change the outlook and draw in investors that will pay premiums because of the restored potential to profit.
The market sets the price and if the marketmakers are stacking the deck in their favour, selling short and telling a tale that will scare investors out, even more than a consolidation proposal, if that is possible!
Team Klein will lose face with Canopy and Acreage investors if they consolidate, which will be tantamount to stealing your shares, but will be golden in the eyes of Canopy's largest shareholder STZ and STZ will be a diversified company with a pot division, made up of some great assets from the receivership of Canopy.
STZ put up $5 billion Canadian for shares of Canopy and contributed to inflated values for most pot companies. Some thought they were crazy but they kept on coming with controlling shares of Canopy and several other very complimentary purhcases that will fit very nicely into STZ's plan to change the story for losing Canopy and Acreage shareholders and put full effort into moving it towards profitability which should be easy because it is almost there.
Canopy and Acreage shareholders will be manipulated out of their shares but STZ's will be very happy.
The minute that consolidation happens is the deathknell for Canopy/Acreage shareholders, imho!
I do agree that a US greenrush will be more exciting than what happened in Canada which was good to experience for shareholders of most pot stocks and woke investors up to the fact that multibagger potential was alive and well. 10x by population alone plus a possible double from there because the US has some very smart businessmen that can connect with the polticians to get what they need to run successful new vice businesses but it will require them to get off the fence.
glta and dyodd