How much?After the first $5 billion, I'm sure they pumped another $5 billion to get the controlling shares.
Where were the hardcore businesspeople from STZ who decided to cough up $5 billion in the first place?
Clearly, they aren't very good at estimating real value but they have continued with the controlling shares and also for several brands of promise.
STZ helped to launch the greenrush for Canada but decided to use normal accounting tools instead of irrational exuberance.
They bought THE leading potpreneur in the world but are capitalizing on and contributing to the rapid re-evaluations of LPs and MSOs.
But they are still positioning with good name brands of promise.
They have lost a lot of trust by writing complicated deals that have depreciated the value of the shareprice because we aren't even sure if they are legal and binding.
That uncertainty to invested shareholders hasn't done anything to bolster the shareprice, in fact, they seem to be hell bent on wiping out the first run of shareholders with reverse splits that are tantamount to ringing the death knell.
Meantime they proceeded with the unpopular and rich reverse split to wipe out Acreage shareholders.
Both Canopy and Acreage put out nrs that they were close to black ink and then the BioSteel deal which was overpaid for and all of that potential got wiped out as another bad buy for Canopy and they picked another loser.
Acreage was an obvious choice for US expansion to take the good brands that Canopy test marketed in Canada when all of the stars align and we get to hang our shingle in the US subject to being allowed, a banking bill to conjoin these two companies and vend in the brands that are targeted for the US marketplace.
CUSA aka Canopy USA was set up as a holding company but it seems that it is a private company that is hard to evaluate.
One thing for sure was the Klein took care of himself with $40 million renumeration for taking the wheel of all of the blundering deals and a grandiose businessplan of taking the leading LP to the US marketplace.
As a burned shareholder of Canopy and Acreage, I think their intent was to convert long term shareholder value from shareholders to preferred shareholders and lenders.
It is hard to believe that Canopy fell so hard from "everything will be ok when we can add the profit from Acreage days".
I think creative and deceitful describes the develpment of what was sold to us as smart business.
I'm sure there was at least another $5 billion pumped in by Constellation to take advantage of all of the good parts and brands that have been promised to come together in the US marketplace.
US politicians are fearful of enforcing the laws on the Cartels and more content to let the US get to legalization one State at a time.
Trump has been mouthing off about chasing the illegal criminals and gangs out of the US. The logical way is to start with pot legalization to cut off profits which is the main reason to be here. Black market is in control of the pot industry in the US and Trump already has had 2 attempts on his life. It doesn't matter if it is some gang member or the President of the US to the bad guys.
The black market has to be converted to legal US potpreneurs who can supply adequate quality Mexican pot for US players to value add with more desirable skus than smokeables.
I am concerned that Canopy is backing off of cannabinoid infused beverages which show so much promise to dethrone other less desirable product skus. Another nonsensical move by a Constellation management when they made their bones with alcohol beverages. All of that expertise in supplying beverages to the world would come in handy for buzzy options.
Keep your eye on who is going to benefit the most from the Canopy and Acreage assets.
It looks to me to be Constellation guys.
glta and dyodd