Is it lack of political will orfear that is hindering legalization at the Federal level for the US greenrush?
Biden tossed out a glimmer of hope for the pot industry but really delivered nothing of consequence that would launch the US greenrush.
For Canopy it is other demonizing moves that are hindering it's forward success to try to regain it's former status as a world class potpreneur.
Canopy shareholders got scooped and adulterated with creative propoganda by Constellation STZ and their story continues.
The constant decline and continually missing black ink has Canopy shareholders in a tenuous position of facing the reality that there investment has been pilfered away from them.
STZ Lending is first in line to the collaterol that is whatever remains of value of Canopy and in retrospect, all the bs about getting rid of failing assets and capitalizing on those assets of potential leaves shareholders uncertain of whether lifting this company back up is going to include them.
The BioSteel deal was once the talk of the biz but how quickly it was taken down and caused a huge drain on the shareprice has me concerned that it was just a strategy used by Klein to paint an even bleaker picture of Canopy's worth and missing the black ink potential that has been hinted at several times.
It isn't clear who's camp Klein is in. His actions speak positively but his lack of committment that he isn't going to bankrupt this company and run away with the spoils.
If he does the latter and screws over Canopy and Acreage shareholders, his plan of Canopy USA holding company will generate a very positive business plan to regain the former glory of Canopy but without all of those pesky old shareholders.
The premature share consolidation was hard to ignore and if Canopy finishes consumating the deal with Acreage, the Acreage part of the deal where they have to give up two or three shares to swap for one share of Canopy is just one more consolidation by a different name.
The pot business ran up hard on irrational exuberance and huge amounts of money were made and lost but the change in sentiment where investors switched back to accounting fundamentals to determine the value of a company and their share price.
I still think that US legalization will lead to success for potpreneurs that are also good business people but supply and demand needs to correct and that is going to result in huge attrition of the number of players who contribute.
As far as Canopy, I think they screwed up bigtime backburnering their beverage lines and bottling facility in Toronto.
They could have stayed the course, especially considering that Constellation is beverages but they should also have tried to capitalize on getting the SAFE supply of Canadian cannabis to the US marektplace.
They also need to give special effort to pharma use pot which is a growing field.
Current investors will see what kind of a man Klein is, if he takes the money and runs or takes the original investors along for the ride.
Is integrity and saving face still a thing for management, plus he already lined his pockets with $40 million of investors money which also justifies the red ink that we are facing despite always being close to black ink?
$40 million would be a gamechanger for most and maybe he has lost interest in building a company.
Leave a million dollars with me and it is safe but leave $40 million and .................?