Canopy Growth Corp T.WEED

STZ Warrants @$50

[quinlash]

My understanding is that the warrants held by constellation had a strike price of $50 each to convert to shares. Maybe I'm the only one here who thinks going that way would be a poor use of cash while the shares are still under a buck.

By having the warrants expire that's less shares that will be showing up on canopy's books.  Again, maybe I'm the only one who ok with that.

Has no one clued into this yet ?

[Apprentice]

No, you're not the only one and you're absolutely right. Why and for what should STZ spend 7 billion (140 Mio x $50 per share) ???   That would have completely misrepresented everything and would have been money wasted.   The alternative of keeping the number of shares lower by not exercising is certainly better and can perhaps bring about a smaller RS or avoid it

[quinlash]

Ok, good to see someone else making sense of it.  The warrants expiring is better for Long position investors vs them being exercised due to Share count implications.  Constellation can just buy off the open market if they want a bigger share of the company or to help strengthen the shareprice 

[BearBull007]

Doesn't seem the share price will get back to $50 anytime soon so it wouldn't make sense to convert those warrants to shares.