RE:RE:RE:any word on a splitA reverse split that I describe as a "castration" of current shareholder's value.
It is a lazy way out and a last resort heralding the decline potential of a companies stock.
The value received isn't worth the loss of shares and doesn't do one damn thing to honestly improve the value to shareholders other than to maintain the qualifications to maintain your listing.
Stocks that get delisted on an exchange just get bumped down to a lesser exchange and most Canadian LPs already got bumped down from the NYSE to the Nasdaq whose requirement is a minimum of maintaining a dollar a share US.
I think that Nasdaq listing is overated and certainly doesn't justify the damage a reverse split brings. The NYSE is the higher exchange but came up with some redneck rule that pot stocks couldn't touch the product or lose the listing and most pot stocks dropped down to the Nasdaq which is more highly rated than lesser exchanges like the OTC and pinks.
Most US pot stocks listed on the legal Canadian CSE junior exchange where it is perfectly legal to list and trade and they aren't that bad an exchange to use.
I relate the CSE to the Cannabis Exchange who honour other exchanges halts and suspensions which I find US exchanges don't. The CSE is actually quick to halt or suspend stocks on their exchange that don't meet minimum requirements for filing reports like monthly and financial reports.
It also is a space for listing companies of potential that just can't raise the funds required by higher qualification exchanges.
Yes, the closer you get to the bottom the more likely is failure but there are companies of good potential that "make it" and move up to higher qualification exchanges like the TSE or VSE.
The VSE got a bad rep because it became the mining exchange which is a long shot business that will break you or make you rich, if you catch the right company that strikes gold or other precious minerals.
I just got tagged with a reverse split for Canopy who did a 1 for 10 share consolidation and wiped out 90% of my shares which I feel is a castration of value potential despite the fact that they now qualify for the Nasdaq listing if they can maintain that 10x value.
They haven't been able to raise the shareprice appreciabely but for sure the 8000 shares I paid for is now 800 and most understand that it will require mega shareprice appreciation to overcome the pain that has already been inflicted because they couldn't come up with a more businesslike response.
ACB should be on the radar of US potpreneurs imho just for the stable of skus they have, all made with Canadian safe and inspected pot and hemp.
The US is a long way from a safe supply for their consumers but that is one thing the Canadians did right although they fumbled badly on posession limits which capped purchases of beverage skus to about half a dozen per purchase, which is ridiculous for a great Canadian Long Weekend where Canadians go camping and drink too much and some even get stoned on pot. A six pack of thc infused beverages just didn't cut it and the low thc limits they inflicted did serious damage to the beverage skus that soft alcohol producers anticipated and were gearing to be suppliers and capitalize on the health benefits of less calories and sugar that consumers are becoming more aware of.
The US has an opportunity to see what Canada did wrong and fix it with some decent Federal legislation that would put all of the States under one set or rules and guidelines and allow Interstate commerce such that cannabinoids can cross State lines legally.
It is cost prohibitive for pot preneurs to have to have tail to snout operations all in one State to produce their end products for consumers.
When/if the US moves on lightening the penalties by the Feds and actually aid and assist potpreneurs to develop their businesses with the same liberty as alcohol has, it will be a great investment opportunity for those that haven't dove in to be stockholders of pot companies.
Or the US can just wait it out and it will happen without the greenrush experience and moneymaking opportunity that woke up Canadian investors and other interested investors and also made a lot of investors rich until stupid legislation caught up with sales and promotion.
I hope we have borrowing power and wisdom and management skill to survive the huge attrition that is looming to curb supply and the amount of players in the cannabinoid biz which has to happen for success to happen!
glta and dyodd