Why do you see Acreage worth as much as Canopy right now? The offer is a 40% premium and gives both companies a unique advantage seen nowhere else. It gives Acreage the ability to expand in the USA with 1/2 of the burden dilution would cost you if you go it alone. Dilution by issuing shares is the only way they will be able to rapidly expand since normal business financing is unavailable to them right now. Acreage has great value as you say, they bring the political connections and their solid network to the table. They have the best business in the USA, that is why Canopy is making the offer. It is easier to keep your advantage when you make it so large no one can touch you. Canopy shareholders were in the exact position you face when Constellation Brands made the 4 billion dollar offer to take over 1/2 the company (Canopy WAS given the same value they are offering Acreage) and by saying yes we got a war chest that has made us unbeatable. The climate in the USA is bizarre if it was normal would not even be having this conversation. The shortest timeline for canna business to be anything close to normal is 1 year with the possibility of never. You say no the advantage the deal brings is lost, the advantage of sharing the expense of expanding and the additional research and support brought by Canopy and connection to great new companies incubated by Canopy Rivers and the many global partners and operations and you get to wait the year or 2 till the Feds get their thumbs out of their butts :) Say yes, and management gets tools to deploy right away to press the advantage you have in the USA and get a bonus in cash at the same time. Their is always the risk that major money players will dump their shares and depress the price of both companies so they can swoop in and get them cheaper but You would have the same thing happen if Pharma or tobacco made an offer. That is the nature of the market, there are times to be a rugged individualist and there are times to join the winning team. I understand the reluctance but this is our opportunity of a lifetime to be an original holder of shares in a global force rather than a local player
Anything I post is my opinion only and subject to change on a whimsy
