Canopy Growth Corp (WEED)

[MMPRuser]

STZ ROI on this investment at $48 a share 3 years from now would not be very good, right?

what they got.....
104.5 million shares
88.5 million are exercisable at a price per share of C$50.40
51.3 million are exercisable at the VWAP at the time of exercise

at $48.60 pps is worth $5 billion CAD - that is what they put up
the 88.5 million would have zero intrinsic value
and the 51.3 million warrants I just don't know - if they were to capture a $10 CAD spread between the VWAP and the PPS at time of exercise, that would be worth $513 million CAD. 10% of their upfront investment...

So, for an investor holding now...at $40 a share, hoping to see it go to $48 in three years would be hoping for about 6% Annualize ROI - 20% in three years. At that point the current shareholder of WEED would outperform STZ's investment in WEED.

But if three years from now the price is above $50.40 CAD, well STZ's investment can see very very serious ROI as it moves past that point.