RE:Canopy has no CaptainIt's true that Cannabis has claimed a lot of victims.
Also made a lot of people rich.
Did Constellation Brands make a mistake to buy into and ultimately take control of Canopy? When it happened, most pot stocks of consequence made shareholders huge opportunities to make money.
Then they figured out that they could buy up the controlling shares in Canopy, infiltrate the boards of Canopy and their other interests and change the measuring stick to financial assessment only.
The cake was all iced up and ready to serve and what shareholders got was cake that they couldn't eat because the value of most of the potstock companies couldn't stand the accounting test.
It showed the interest from investors that drove the shareprice values of all of these potpreneurs to crazy heights based on nothing but hype because the market for pot was flooded with supply, a lot of which was illegal and possibly unsafe.
Team Klein and Constellation were quick to recognize that they could lean out the companies involved, generate huge renumeration for doing so and play both sides of the market, both bull and bear for their own interests.
When the leaders of a company become the marketmakers and can make their actions and nrs raise mistrust and back it up with tales of woe in a business that was ripe for rightsizing of supply and potpreneurs.
That rubbed off to the politicians who can't get the work done to back up the committment to legalize this industry.
The Cartels and black markets don't want it settled and carry on doing their business as usual with the politicians content to let it happen one State at a time.
Klein pocketed enough renumeration to isolate himself from any repercussions from disgruntled shareholders who realize that management shouldn't be marketmakers and destroy companies that they manage.
It is amazing how long he juggled the Canopy story while manipulating the shareprice to the point of disillusioned investors from the mixed signals being sent out.
Converting Canopy to a US functional company is made believable by the Canopy/Acreage deal where they stacked up steady losses despite all of the bs about vending in the value by some legal chicanery, unproven and yet to happen while it seems the shareprice of these companies has been reduced to shareholders accepting that these companies are done when in fact, it seems that they are, by their own admission, seeking out investments just like they secured brands and recipes from companies that show huge potential but have been relegated to the back burner of shareholder opinion that they are done.
Constellation Brands is the largest shareholder of Canopy by their prowess of changing the direction of their initial acquisition of Canopy to a story of woe and defeat, backed up with a steady stream of promising financials that just never delivered.
Now, the news is that we are conquering the Canadian market while the US legalization is up to brave politicians to do the legal work which puts them in the crosshairs of the black market who play Cartel stakes that causes wimpy politicians to drop out.
Constellation made a huge $5 billion investment that woke up potrpeneurs to the crazy multi-bagger multiples that insiders and lucky investors were privy too but controlled the narrative as soon as their firesale acquisitions gave them irrefutable control.
They opened the door and made everybody realize that the pot market was overheated, oversupplied and overwhelmed that they could get away with taking this from winner to loser status at will.
That $40 million plus that Klein got was for stepping up and doing the dirty deed to shareholders and initial owners that he did.
What is left is a company of huge potential, leaned out of it's losing divisions by straight attrition and marketmanipulation with Constellation firmly in control to receive the value, brands and bricks and mortar, no matter what narrative they follow.
If they tank Canopy et al completely they still wind up with the spoils or if they put their shoulder and narrative behind the wheel of Canopy to lobby for and push the US legalization that falls in line with the one state at a time legalzation where Canopy can be ressurected to the once formidable, leading potpreneur that could be that again.
glta and dyodd