Canopy Growth Corp (WEED)

[MMPRuser]

No, i honestly don't think that STZ will ever actually become a 50% owner, they can obviously sell their warrants....the first tranche of warrants from their first deal have been available to exercise for over a month now....

they could exercise the warrants, and sell the underlying shares on the market and just keep the profit, to help pay for deal number 2, that will close later this month.....9.4 million warrants at $50 profit each - they could easily get half a billion for those....10% of the big deal right there.....
https://www.newswire.ca/news-releases/canopy-growth-establishes-groundbreaking-strategic-relationship-with-constellation-brands-654060453.html

In exchange for the investment, a total of 18,876,901 Canopy Growth common shares will be issued at a price of $12.9783 per share based on a 5-day volume weighted average price (VWAP) as of the close of markets on October 27, 2017. An equal number of common share purchase warrants will be issued at the same price, subject to certain restrictions, expiring 30 months from the closing date. The common shares and warrants will have a hold period of four months and one day from the closing date, with the warrants being exercisable in two equal tranches, with the first exercisable tranche date being August 1, 2018 and the second exercisable tranche date being February 1, 2019.

I think STZ will end up with a very large amount of shares at a very low cost....maybe aiming for 33%....as a shareholder of STZ at least that is what I am hoping for.....I mean I sure hope they were exercising those warrants at $70 a share, I hope STZ sets a ceiling and get's paid from anyone that tests it....

I mean at $70 they can exercise a warrant, pay WEED $13, keep $57 a share....buy a share at $48.60 later this month and get another warrant for $50.40...I mean maybe they are restricted from exercising their warrants while deal number 2 hasn't closed yet.....but I don't think so...