Canopy Growth Corp (WEED)

[MMPRuser]

yep - all stems from this document
https://www.canopygrowth.com/wp-content/uploads/2018/08/CBI-CG-Press-Release-FINAL.pdf

.....Constellation Brands will increase its ownership interest in Canopy Growth by acquiring 104.5
million shares directly from Canopy Growth, thereby achieving approximately 38 percent ownership when
assuming exercise of the existing Constellation warrants. Constellation Brands is acquiring the new shares at
a price of C$48.60 per share..............

As part of its investment, Constellation is receiving 139.7 million new warrants which are exercisable
over the next 3 years. Of those, 88.5 million are exercisable at a price per share of C$50.40, a 43.0 percent
premium to Canopy’s VWAP, and 51.3 million are exercisable at the VWAP at the time of exercise. If
Constellation were to exercise all existing and new warrants, its ownership would exceed 50 percent.

Yes - that article is another way of looking at exactly what I am talking about.....dilution....and at $70 a share dilution is guaranteed....i am not talking now, I am talking in 2021....if the price of weed is $70 a share in 2021 there would be massive dilution....it can go down from here and still guarantee massive dilution....

i am bored I might run through the arithmetic all again, because it is not clear they use the fully diluted share count here, there are $600 million in convertible notes, etc, etc....

bottom line it seemed clear to me long ago that over $65 seemed really high....since August 15th....I mean all the important information from that press release was published first on Auguest 15th

because at that price any and all dilution is going to hurt CGC shareholders to the benefit of STZ shareholders - an equity transfer option for the next three years.....and the first tranche of their first deal has been active for over a month....and what a beautiful month it was!!!