Post by
thcalternative1 on Apr 21, 2019 6:51am
Deal with Canopy better than Originally thought
As some have said the futire of Acreage shares directly tied to Canopy. If Canopy doulbes from these levels in the next few years so does Acreage. In the meantime Acreage has access to capital, know-how, brands of Canopy etc. At the end of the day the upside is much higher than $27.
Buying Acreage shares is a cheaper way of buying Canopy shares.
Comment by
Sampic on Apr 21, 2019 7:30am
I don’t think so bro 3.4 billion now 3.4 billion 90 months from now no matter what the share price does.
Comment by
Sampic on Apr 21, 2019 7:35am
Could be wrong I suggest anyone holding this stock do there own dd.
Comment by
Sampic on Apr 21, 2019 7:41am
I think where people are getting confused is it says upon closing well the deal closes now for the option to buy for 3.4 billion not when the deal is finally done at legalization.
Comment by
Sampic on Apr 21, 2019 8:00am
Sort of like buying a property you put down a deposit and set a closing date in this case 90 months if the property you purchased goes up you don’t pay more for it you already own it unless you don’t close within that 90 months.
Comment by
thcalternative1 on Apr 21, 2019 8:48am
Acreage will hold approx 16-17% of Canopy after closing. Therefore the amount of stock issued has am opportunity to appreciate relative to Canopy's growth in the next few years. Is this a correct assumption?
Comment by
Sampic on Apr 21, 2019 9:41am
Not in my opinion you don’t get the stock until the deal closes which could take Up to 90 months.So the sooner the USA legalizes the better.What you get now is cash no stock.
Comment by
Sampic on Apr 21, 2019 9:46am
Why do think the stock price tanked when the deals details were released your return is basically set now until legalization.Its still a good return If legalization takes a year or so just not what investors are expecting from the cannabis sector.
Comment by
Sampic on Apr 21, 2019 10:03am
It’s pretty simple If you look at it like I said Canopy is putting down a cash deposit and they have up to 90 months to close the deal for 3.4. Billion if they don’t close a Acrg keeps the cash plus a cash penalty.
Comment by
Sampic on Apr 21, 2019 10:26am
Although I thought Canopies price would drop to under 40 before this deal I feel it will help there share price establishing a solid foot hold in the USA.It will also help Acrg in so many ways of the 3.4 billion dollar sale price is just the number at the time of agreement and has no limits.Sp if Canopy is 100 dollars a share in 2 years the deal is around 7billion that’s what you need to find out.
Comment by
Thebills on Apr 21, 2019 11:26am
We need a lawyer to explain this deal to us as everyone has a different opinion on how it works..when you have skin in the game you better know how it works...