Canopy Growth Corp T.WEED

New Press Release - CANOPY GROWTH ANNOUNCES DETAILS REGARDING CONVERTING INTO EXCHANGEABLE SHARES

SMITHS FALLS, ON, March 11, 2024 /PRNewswire/ - Canopy Growth Corporation ("Canopy Growth" or the "Company") (TSX: WEED) (Nasdaq: CGC) today announced additional details with respect to the previously announced special resolution to be voted on by the shareholders of Canopy Growth (the "Canopy...read article.

[srtman03]

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[charlie007]

Why are they saying they need to create unlimited new shares?  Can't they create the number of new shares based on the total number of existing old shares? 

[monte8]

I too are somewhat confused with this announcement.  Can we discuss on this board how the average CG shareholder will be affected by this special resolution to be voted on as follows:  (i) creating and authorize the issuance of an unlimited number of a new class of non-voting and non-participating exchangeable shares in the capital of Canopy Growth (the "Exchangeable Shares"

[monte8]

Thanks Quinlash, you were providing part of the answers while I was posting. Basically. aside from the dilution, how does this affect the average CG shareholders and WEED shares?  If CG USA is one day profitable will WEED shares benefit?

[quinlash]

Many cannabis companies are currently operating at a loss, this is actually normal for emerging markets.  All of the historical highs on this one took place while the company operated at a loss.   Virtually all highs occured during periods of time when optimism on US Legalization started to ramp up.  The most notable moves on Canopy occured in late 2020 / early 2021 when Biden

[quinlash]

The shares are a completely different group of shares so non-dilluting to existing shareholders.  Existing shareholders appear to now have the option to convert (one to one) over to the USA Canopy Shares if they wish to do so. There is apx 3 companies within the US that will be rolled up under USA Canopy. Each company already has its own product offerings and selling within the US. 

[monte8]

OK then, this is much clearer. Thanks! So what I understand is as follows: - the issuance of shares will be non-dilutive to shareholders - existing shareholder now has that option to convert (one to one) over to the USA Canopy Growth shares. - the 3 companies existing will one day be converted to Canopy USA shares as one large corporation. 

[quinlash]

Monte, Please do not consider my comments as the be all and end all on the subject. As noted, I am commenting based on my read of the news available.  I am not an employee or representative of Canopy Growth, I am a Retail Investor. Never stop researching and confirming things for yourself.   I would expect the CEO to do an interview this week on the subject.  If I am around

[monte8]

Indeed and thanks Q! I will research Canopy Growth news and information on a daily basis for further updates in this matter.  Google "Canopy CEO interview" on daily basis is a good tip.

[caretired1]

I'm not sure of the 3rd point about all combining under 1 co.  I think they will buy all of the shares of each co but if CUSA is to be a listed company on Nasdaq, they can't consolidate them accounting wise - same issue as CGC has now.  Maybe they can amalagamate them legally?  Its unclear to me what the mechanics are. Also, what benefit comes from converting to exchanegable

[quinlash]

Care, I believe your questions were covered in The Dales Report interview done with the CEO a couple of weeks ago.  To avoid mis quoting the CEO I would rather suggest you jump on YouTube and review the interview. Sorry, I do not have the link handy to share

[caretired1]

Ya, I've looked through things a couple of times. CUSA will pay whatever remains on the US company acquisitions by issuing shares, I belive. There is nothing specific about whether these new subsidiaries of CUSA will be amalgamated or remain legally separate CUSA will not have its shares trading anywhere until US leaglization and then they would have to list or go public or do something. I

[BrokerG]

Thank you care for your post. So why would I exchange my current shares for a non-voting, non-trading exchangeable share? I don't see any benefit to me. And Yes Q, I have listened to all CEO interviews.

[caretired1]

I agree that its unclear what value there may be to us as common shareholders to convert at the moment. The point though is the vote is to allow the creation of exchangeable shares and have CGC own CUSA via non voting shares so it doesnt control CUSA for acctg purposes in the eyes of NASDAQ so they can stay listed there but complete the purchases of Wana Jetty et al. If they do this and those 3