More questioning companies strategy ?Heck I've said this over and over and now this is becoming centre piece of Canopy's business ?
Day late and a dollar short into clueing into the problematic issues the company SOLE focus has lend to a COLLAPSE ???
DUHHHHHHHHHHHHHHH !!!!!!!
Canopy USA remains the focal point of its strategy
For years, the big draw for investing in Canopy Growth has been that it would be ready to move into the U.S. pot market once it's legal to do so. It has reached tentative deals with Acreage Holdings, Wana Brands, and other U.S.-based cannabis companies that it hasn't been able to close on due to the federal ban on pot in the U.S.
Marijuana legalization isn't on the horizon in the U.S., so Canopy Growth is doing the next best thing: Creating a special purpose vehicle for all the pending deals it has with U.S.-based companies, called Canopy USA. There is a shareholder vote scheduled for April 12, which, if successful, will move things forward and pave the way for the creation of a new class of non-voting, non-participating exchangeable shares.
Canopy Growth says it expects "to be the first and only U.S. listed company offering shareholders a unique opportunity to gain exposure to the fastest growing cannabis market in the world." It will have a non-controlling interest in the entity, and it will be an "unconsolidated investment." The Nasdaqexchange had previously objected to Canopy Growth consolidating the results of U.S.-based cannabis companies, which is why investors shouldn't expect to see those results pad up Canopy Growth's own numbers anytime soon.
My concern as an investor would be that Canopy Growth continues paying too much attention to a market that is unavailable and is likely to continue to be unavailable to the Canadian pot producer for the foreseeable future. Spending time and money on this elaborate setup for Canopy USA in the hopes of someday being able to capitalize on those opportunities doesn't seem like a great use of resources, especially since Canopy Growth's financials still need lots of work to get to breakeven and for this to be a viable investment