CV Sciences Inc (CVSI)

[Wolf-man jack]

CVSI authorized shares at 190 million. Outstanding / Float around 100 million. The Wolf is with you Fast Mony about CGC. The Wolf is looking deeper into the Stars (STZ) you understand. An offer of 30 to 40 million shares to Star light Star bright or a follow on offering. What would be a fair market value for those shares? 6 to 8 dollars? Add three directors of their choosing? Meatloaf ‘Three Out of Five Ain’t Bad’ you understand. Just throwing in out there. Wishing upon a Star you understand. E.F. Wolf


Constellation Brands, Inc. (Constellation) (NYSE: STZ and STZ.B) and Canopy Growth Corporation (Canopy Growth or the Company) (TSX: WEED, NYSE: CGC) today announced the closing of Constellation’s $5 billion CAD ($4 billion USD) investment in Canopy Growth, which was previously announced on August 15, 2018. The transaction was approved by an overwhelming majority of Canopy Growth shareholders and has been granted all required regulatory approvals, including by the Canadian government under the Investment Canada Act.

With this investment, Constellation Brands increases its ownership interest in Canopy Growth to approximately 37 percent of outstanding common shares of Canopy Growth and has appointed two members of its executive team, as well as two independent directors, to the Board of Directors of Canopy Growth. Constellation estimates the interest expense associated with this transaction to approximate $55 million before tax with an approximate $0.25 impact on fiscal 2019 comparable basis EPS results. Constellation also continues to evaluate the potential equity in earnings impact from the Canopy Growth investment and related items.

https://www.cbrands.com/news/articles/constellation-brands-5-billion-cad-4-billion-usd-investment-in-canopy-growth-closes-following-shareholder-and-canadian-government-approval

Dilutive Secondary Offerings


A dilutive secondary offering, also known as a follow-on offering or subsequent offering, is when a company itself creates and places new shares onto the market, thus diluting existing shares. This type of secondary offering happens when a company's board of directors agrees to increase the share float for the purpose of selling more equity. When the number of outstanding shares increases, this causes dilution of per-share earnings. The resulting influx of cash is helpful in achieving the longer term goals of a company or it can be used to pay off debt or finance expansion. Some shareholders shorter-term horizons may not view the event as a positive.

A dilutive secondary offering usually results in some sort of drop in stock price due to the dilution of per-share earnings, but markets can have unexpected reactions to secondary offerings. For example, in January 2018, the stock price of CRISPR Therapeutics A.G. saw a one-day increase of 17 percent after the company announced a secondary offering. Although the exact reason for the rapid increase can't be known for sure, analysts suspect it was because investors thought the announcement signaled something greater in the future, perhaps related to the company's plans to use the additional capital to fund further clinical development.

https://www.investopedia.com/terms/s/secondaryoffering.asp