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Bullboard - Stock Discussion Forum Canopy Growth Corp T.WEED

Alternate Symbol(s):  T.WEED.DB | CGC

Canopy Growth Corporation is a cannabis company. It delivers innovative products with a focus on premium and mainstream cannabis brands, including Doja, 7ACRES, Tweed, and Deep Space, in addition to category-defining vaporizer technology made in Germany by Storz & Bickel. The principal activities of the Company are the production, distribution and sale of a diverse range of cannabis and... see more

TSX:WEED - Post Discussion

Canopy Growth Corp > R/S is opposite of dilution
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Post by quinlash on Dec 13, 2023 10:05pm

R/S is opposite of dilution

Dilution is a term used to describe the issuing of additional shares therefore spreading the value of each share thinner (diluting their value)

A reverse split reduces the share count therefore the value of each share represents a bigger portion (share) of the company. This is why the SP goes up and all the historical prices are in turn adjusted upward after the consolidation takes place.

For the sake of agreement let's say canopy does indeed issue shares afterwards, why would they do this?  Two immediate answers are

1) they need more money

But do they? They raised $50 mil at $1.09 / share not very long ago and they removed the cash burn of biosteel. We can all guess but we can all also access their quarter reports to make a more educated / informed guess.

2) they issue shares to take over another company

But will they? Is there a company or sector you can think of that they should go after? 
Taking over another company immediately gives canopy added market share and there is value in that. 

Pretty sure most on the forum only wish to daytrade so I wouldn't take any more of your time.

If there is an actual investor out there, then I hope this helped

Q
Comment by charlie007 on Dec 13, 2023 10:11pm
A reverse stock split also is known as a stock consolidation, stock merge, or share rollback and is the opposite of a stock split, where a share is divided (split) into multiple parts.
Comment by Doubleeagles on Dec 14, 2023 1:25am
There will be more shares issued it's not if it's how soon. Not being negative just that it's now primed for it.
Comment by Dude51 on Dec 14, 2023 2:08am
"But will they? Is there a company or sector you can think of that they should go after?" You asked, I am thinking this company here might be one? OILS, is the symbol aka Nextleaf and next Tuesday is their AGM and there putting out for a vote for the share holder rights vote, just in case there is some sort of take over bid out there, okay. Could be a play but I think that it is ...more  
Comment by HighTime20 on Dec 14, 2023 9:02am
1)  If they didn't need the cash, they would have waited on consolidation and got an extension.    2)  They are liquidating everything they own.  They won't be buying anyone else up.  They are going asset light.  Why would they add the complexity/assets of anyone else to this mess?  De-Klein couldn't run a lemonade stand in the Canadian market.& ...more  
Comment by geodcan on Dec 14, 2023 2:58pm
STZ, Canopy and ACRG have already been picking up the brands or rights to brands that they have decided will round out the American effort, whenever that happens. Probably why they are cash flow troubled. In the past, lots of companies overpaid hugely based on positive momentum and supply and demand were in a more favorable range. Canada has built a huge supply of safe, inspected and traceable ...more  
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