Two things to note here today for the Canopy forum & Canopy s/h!
First, it seems the rumors are true and Canopy's auditor KPMG, a VERY reputable soilid auditor btw, OFFICIALLY RESIGNED from being the company's accounting firm. Though understandable & not tremendously unexpected, still quite a shock on the timing of it all. Soon after the much delayed Annual financial report & restated Bio Steel statements? Hmmm....it seems something doesn't smell right here, and WTH really went down between the company & it's auditor KPMG? At the very least, this is the LAST thing someone in a precarious situation such as Canopy needed and it will just add another dark cloud over the company and more selling pressures to its already "fully squeezed" stock.
From KPMG perspective, i get it. A reputable company like KPMG has a lot to lose in terms of stature and they don't want to soil their reputation with the likes of someone like Canopy, who's in a whole mess of trouble with some dubious financial inconssistancies & anomalies. So i get why they did this! What really looks bad here for Canopy and it's mgmt, is that usually in most cases, it's the auditor that gets the big boot from mgmt ......NOT the opposite. So why i don't qualify this as a rare case, its certainly NOT the norm in siutations like these. So because of this unfortunate resignation, those dark clouds of doubt that Canopy had hovering over it's head, just got bigger and more numerous.
Unfortunately for Canopy s/h, IF you're that ignorant, blind & stupid to STILL be holding here and STILL be called a Canopy shareholder, your situation just got a lot more complicated & worse. And i wouldn't be terribly surprised to see ANOTHER 10% drop in the stock today ONTOP of the pummeling it has already gotten! So you can more or less totally forget the possibility of the stock EVER going back to $1.......Not gonna happen anymore! Not after this news certianly.
Now this is a question of time and what form of Bankruptcy the company will choose, CCAA creditor protection, Chapter 11 pre-arranged BK, insolvency or Chapter 7 liquidation? If i had to guess which of the following had the highest probability of happeing, i'd go with either CCAA protection or a pre packaged Chapter 11 BK filing. And i'm basing this on both XP and the fact that Canopy's biggest financial backer, Constellation Brands, would probably be unwilling to enter liquidation and lose everything by being at the mercy of other creditors. And besides, they'll have to take a mssive writedown, which would adversly affect their own stock and they do have the financial power (and means!) to look at other more viable options. So even though Constellation might get out of this with something in the end, other shareholders, especially retail, will not be so lucky and fully expect them to wiped out completely which ever option Canopy mgmt choose.
The lesson here? Still the same one as previously stated, many times before, and the one which has been continously emphasized & advised thoughout this entire ordeal......GTHO before the end comes! Just incase, for the doubters, for those who are still NOT convinced that KPMH has resgined.....here's a small excerpt from KPMG's resgination filing with the SEC.
(a) Resignation of Independent Registered Public Accounting Firm
"On June 22, 2023, KPMG LLP (“KPMG”), which had been serving as the independent registered public accounting firm of Canopy Growth Corporation (the “Company”), declined to stand for reelection and resigned as the Company’s independent registered public accounting firm, effective June 22, 2023 (the “Resignation Date”). The Audit Committee (the “Audit Committee”) of the board of directors of the Company accepted KPMG’s resignation on the Resignation Date.
| Item 4.01 | Changes in Registrant’s Certifying Accountant."
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Before i let you guys go, just ONE more thing! And this pertains to the integrity (whatever credibility & usefullness it has left!) of the Canopy SH forum and it being maintained as some sort informative source of material & updates. IF you guys WANT to keep it this way, i strongly suggest you restrain yourselves from usless spamming of the board with nonsense, off topic trash and above all SPAMMING. Spamming one liner opinions, or a few words in dozens of posts isn't conducive in keeping an informative, clean forum. It just saturates the board & cloggs it up with garbage that will turn people off from coming back. Stockhouse IS NOT Twitter, you don't need 20 posts every few seconds for something that could be done in ONE paragraph in ONE post! And this is shot across the bow to dummies/culprits like cousin Jetthro & Uncle Jed .....just in case folks arent quite sure if it's them or not!
Later my friends.....btw.....For those that are JUST traders and made a BAD move/trade by going into Canopy & are now stuck in this.....Just a heads up for you guys....i had mentioned in one of my posts on here that you were better off in Bitcoin miners rather than Canopy, both in terms of risk & potential short term upside. Well, Bitcoin seems to be going on a massive run, and who knows how high it will go this time around. So for a swing or daytrader, i strongly advise you're better off to be in a Bitcoin miner than stuck in this dwindling mess........Just saying.....
So for those who are interested......just visit the HIVE forum for that info.......and read my posts on there!
GLTA