Canopy Growth Corp T.WEED

Terrascend investment

[lou444]

Canopy Growth Terrascend investment (17% stake) is worth more than their current market value. Not to mention Acreage holdings and other stateside assets. Formation of CUSA is the key to Canopy's future. Debt will be much lower because biosteel filed for bankrutcy and it's debt was wiped out.

[Oldweed]

With the CUSA structure in place would there be any legal obstacle preventing a split from CGC should CGC file for bankrupcy? As a separate entitly is there any legal obstacle preventing CUSA from going private if ties with CGC are severed? There seems to be some important escape clauses in plcae that provide STZ to do what they want, so this is a concern for any CGC investment I would worry about

[lou444]

The hope hinges on DEA announcement. If they go ahead with sch3, Canopy will likely be able to consolidate all their USA assets under CUSA. CGC will become one the largest MSO in the States. I'll bet market value for the NewCo will not $500M

[lou444]

Oh forgot to mention that Canadian government is considering lowering excise tax on cannabis. Currently set at $1 per gram this factor alone is crippling most LPs. The government is collecting nearly 1/3 of gross profit from MJ sales in Canada 

[Oldweed]

That's an interesting point actually, in my DD on OGI I notice in their comments that they are current in all their excise payments but go on to say that certain other LPs are not! I wonder if CGC is one of the LPs aluded too in arrears? 

[caretired1]

As an industry, I read the Cdn LPs are in arrears for excise taxes equal to one years taxes so some LPS must be wayyyyy behind

[quinlash]

Government imposed high tax on both sides of the border, US MSOs have to deal with 280e. Canadian producers are overdue to see reform for many things, including tax. The US MSOs are counting on reform to remove 280e.  The fact remains that some are begrudgingly dealing with it while others facing challenges.

[lou444]

The government will never see most of what the industry owes. Could be a boost if government reduces excise from fixed dollar amount to a percentage 

[geodcan]

I don't know what Klein can pull off as far as the Canopy and Acreage deal are concerned. Despite him saying that they aren't waiting on some new US legislation, they are waiting on something. Most know that STZ has controlling shares of Canopy and have taken WEED down hard with the consolidation being the worst thing that has happened to original shareholders. They have a whole roster