Canopy Growth Corp T.WEED

Risky???

[Blacky1]

Think I am pulling out of this one. Not sure if it's going north or south.

[quinlash]

I'll take your shares on the way out.  Hope you made a few bucks while you were here. Take care

[Pedal2themetal7]

All about the potential reverse split right now, it's on most of retail investors mind.

[quinlash]

Based on the date of the notice and the 180 days grace the Company has until Jan of 2024 to gain NasDaq compliance.  To do this they need 10 days in a row of trading over $1 USD.  We are currently on Day 4, so essentially if we stay around current trading levels (or trend up) we will see this question mark removed by the end of next week. Now that the BioSteel question has been

[Coloradobuff]

If they can get their SG&A to 150 million and 30% gross margins they will stop their cash burn. If they can grow sales even better. Or if they combine us assets even better. The bankruptcy risk should be a lot less today. They should also litigate against previous biosteel owners and auditors for not catching this. I would never use their former auditors....what were they thinking? 

[Vulcan]

Dont get me wrong it's good we are green..  but given the news I would have exspected deep red.. bankrupsy protection on bio ??  Does that not show an epic  fail in managment.. in many ways...  what other areas could be subject to failure. ..  does the good news here outweigh  the negatives .. any insite appreciated.. cheers

[AmericanAkita]

If you read the bankruptcy was initiated to stop the injection of cash into biosteel immediately. Not that the company is in trouble and that it's bankrupt. Maybe with the funds that they get from the sale of biosteel they could do share buy back at these low share prices and cancel shares as opposed to doing a reverse split if it can maintain a dollar and above NASDAQ rule. Who knows that

[quinlash]

Hey V, I can understand why it may sound confusing and as to why the SP went up on the news but I will try to draw some examples to put it in better context for you. What Canopy has with BioSteel is essentially "another company" under it's overall Corporation.  BioSteel operates as it's own Profit and Loss Center (in simplier terms "as it's own Company"

[Vulcan]

Thanks Q.. always count on you for help and info       I've not really followed canopy since supreme take over .  Just recently  got on board    ..cheers my friend

[quinlash]

You're welcome, but let's be honest... I don't get it 100% right all the time so do, please, make sure to research any and all topics on your own as part of your DD. Best Regards Q

[Coloradobuff]

1. Bruce linton got 4 billion from from constellation, very good, and got people excited about cannabis.  2. Bruce linton spent money like a drunken sailor. Every acquisition was an overpay and most weren't needed and written off.  Very very very bad.  3. His spending led to the company employees spending stupidly on SG&A. Also very bad. 4. Klein came aboard and

[Pedal2themetal7]

I again agree with you, except that even if they reach compliance, it doesn't mean they won't go ahead with a split. Until Klein can show the company can be profitable, I'm very skeptical when it comes to investigating. I'll sit back and see how they navigate this coming year. IMHO

[quinlash]

When pondering this point I place myself in the shoes of the CEO of Canopy Growth.  When faced with the possibility of having my company go back into compliance through organic Shareprice progression vs a share consolidation I would certainly be more inclined to allow the nature of the market to do the work for me, especially considering the timeline allowed reaches into 2024. The second

[Pedal2themetal7]

100% agree, but we're talking about Canopy and Klein!!! Time will tell  IMHO

[quinlash]

If you are considering a short position, or hold one and you're an Average Joe...  I would strongly recommend getting to know fundamentals prior to Friday of next week.  If my specuation on the NASDAQ listing is correct then this shareprice will correct upwards in the trading sessions following. I have seen this movie before, I know it has a happy ending. jmho / dyodd

[Coloradobuff]

I hope you are right. We don't know that though. He gets a lot less flack of canopy goes back to 3usd. A;so the bio steel bankruptcy was a smart play. 

[Donwaan]

Are there any reasons other than meeting the Nasdaq $1 listing threshold for Canopy doing a share consolidation? Any financing advantages, institutional investor requirements etc?

[quinlash]

Based on publicly available information, my view is that there is no other reason outside of nasdaq requirements. This is not to say he may be wanting to do further acquisitions etc that are not yet disclosed however this would go against his stated goal to streamline the operation  Jmho 

[Donwaan]

With CGC trading above $1 now on Nasdaq will that make a reverse split less likely? Or not be a major factor?