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Home https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Business https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Welcome to America: Canopy Growth Purchases Acreage Holdings – Acreage Holdings, Inc. (OTCMKTS: ACRGF) Summary Canopy Growth (NYSE: CGC) has announced an agreement that entitles the company to purchase Acreage Holdings (OTCQX: ACRGF) when legally permitted. On a larger stock exchange can not work in companies that violate federal laws. Acreage sells cannabis in the United States, which remains federally illegal. Canopy therefore does not buy Acreage Holdings today. Instead, the terms of the agreement give Canopy both the right and the obligation to acquire Acreage Holdings when it is legally permitted. Canopy will therefore not own Acreage Holdings today, but will own Acreage in the future. This deal is win-win: Canopy gets the chance to grow its brand and sell branded products on the world's largest cannabis market. Meanwhile, Acreage Holdings gets a cash inflow, which is important until or unless the SAFE Banking Act or STATES Act gives US cannabis companies better access to capital. Investors in Acreage will also receive a 22% premium over Wednesday's closing prices and support to the world's largest and richest cannabis company. Parties Canopy Growth is the world's largest cannabis company. Led by co-managing director Bruce Linton, Canopy has consistently had the best results in the new cannabis industry. Thanks to strong implementation, Canopy secured the first and largest billions of dollars worth of a non-cannabis company Constellation Brands (STZ), the first Canadian cannabis company in Canada to announce access to the US hemp market and order the largest market share on the growing Canadian recreational cannabis market. Because of these successes, Canopy can deserve its title as the world's most valuable cannabis company with a business value of about $ 18 billion. Source: Acreage Holdings Fourth Quarter Earnings Presentation Acreage Holdings is a multi-state operator in the United States with 25 cannabis dispensers and 87 dispensing licenses. I cover Acreage Holdings at Growth Operation and typically liked the company and especially admired a couple of their acquisitions which I thought were attractively priced. Acreage's latest quarterly results include U $ 10.5 million in revenue of 42% gross margins, with U $ 22.9 million. in pro forma revenue. The net result is not one of the most important categories in the cannabis firm's earnings due to the esoteric way Canadian companies' Canadian accounting standards work, but Acreage lost a glance of $ 217.6 million. Last quarter or U $ 2.63 / share. [19659010] Acreage's cash costs (U $ 202 million implemented last year) and Canopy Growth's deep pockets (C $ 4.1 billion in cash) mean that a pairing here could be mutually beneficial. The problem The problem with such interconnection is that cannabis is federally illegal in the United States. As a result, listed companies on major exchanges cannot own US cannabis companies, and US cannabis companies are referred to the Canadian Securities Exchange, a smaller Canadian exchange that is willing to accept state legal entities operating illegally federally. 19659010] Acreage Holdings is one of those companies acting as ACRG.U (with the U suffix indicating it trades in US dollars) on the Canadian securities exchange. The solution Canopy Growth's solution to this problem is relatively simple: they want to buy an irrevocable right and obligation to buy 100% of Acreage Holdings. "Canopy Growth Corporation and Acreage Holdings, Inc. are pleased to announce their final agreement on agreement giving Canopy Growth the right to acquire 100% of the shares in Acreage with a requirement to do so the time when cannabis production and sales become federally legal in the US ubject to obtain the necessary prior approval of the shareholders of each of Acreage and Canopy Growth, respectively, and the approval of the British Columbia Supreme Court. Following approval by Canopy Growth and Acreage shareholders as well as the Supreme British Columbia (British Columbia), according to the event agreement, Acreage Holders (as defined below) will receive an immediate aggregate payment of US $ 300 million or approximately US $ 2.55 per sub-stock share related action based on on the currently outstanding subordinate voting shares for Acreage and conversion of certain convertible securities described below. acre holders of underlying voting shares in Acre 0.5818 of a joint share of Canopy Growth for each subordinate shareholder held at the time of the completion of the transaction. In exercising the right, the total remuneration payable under the Transaction is valued at approx. DKK 3.4 billion USD on fully diluted basis. It represents a premium of 41.7% over the 30-day volume-weighted average price of the underlying voting rights on Acreage's Canadian Securities Exchange ended on April 16, 2019 (based on the exchange rate, the top cash premium and the Canopy 30-day volume-weighted average price). shares as of April 16, 2019). " Canopy Growth Press Release, April 18, 2019 If the agreement is approved by the shareholders Acreage and Canopy, Acreage shareholders will immediately receive $ 2.55 / share and their Acreage shares convert to Canopy Growth shares with a rate of 0.5818 Acreage Holdings shares per Canopy Growth share when it becomes legal to complete the transaction. Effectively, this means that stock prices will be tied to Canopy prices and vice versa. Given the closing prices April 17, Canopy's price offer reflects a 22% premium to Acreage's $ 22.49 price. Thoughts This deal is win-win. The biggest problem For MSO & # 39; s like Acreage Holdings is that they have limited access to capital .A deal with Canopy Growth will eliminate these issues, giving Canopy Growths C 4.1 billion in cash as of 31 December. the capital would allow Acreage Holdings to expand greatly faster, acquire licenses in several states and expand the store's footprint faster than competitors. Meanwhile, Canopy Growth can expand its brands – such as Tokyo Smoke and Tweed – into the US even before it is federally allowed to operate in the country. Canopy Growth will eventually acquire a network of stores that already sell Canopy branded products in Canopy brand stores the day American laws change. Once again, Canopy Growth has demonstrated their ability to be the first to offer deals among Canadian licensed manufacturers and their ability to execute offers without leaks or rumors: This agreement was unknown to the public until after opening hours on Wednesday and was announced Thursday morning. For a deal of this size, it is remarkable how few leaks are allowed and how quickly Canopy Growth was able to announce the deal from these leaks. In my opinion, Canopy Growth's performance is unmatched in the Canadian cannabis sector, and this deal is just another example. This agreement will also encourage other Canadian LPs, and possibly even industry outsiders, to look much closer to acquiring US cannabis companies. Other MSOs are like Green Thumb Holdings (OTCQX: GTBIF), Curaleaf (OTCPK: CURLF), Harvest Health (OTCQX: HRVSF) is entirely up to the news on Canopy's purchase, as each one can find more potential acquirers and investors. 19659029] Growth Operation: Helping Investors Make Intelligent Investments in the Flowering Cannabis Sector We are the largest community of cannabis investors in Search Alpha. We have recently launched in-depth comparisons by both Canadian LPs and US multinational investors for investors interested in this fast-growing sector. Join us to get daily cannabis news excluding access to my cannabis portfolio excluding depth coverage including coverage of Acreage Holdings Charlotte's Web ] CannTrust Cansotium

Welcome to America: Canopy Growth Purchases Acreage Holdings – Acreage Holdings, Inc. (OTCMKTS: ACRGF) Summary Canopy Growth (NYSE: CGC) has announced an agreement that entitles the company to purchase Acreage Holdings (OTCQX: ACRGF) when legally permitted. On a larger stock exchange can not work in companies that violate federal laws. Acreage sells cannabis in the United States, which remains federally illegal. Canopy therefore does not buy Acreage Holdings today. Instead, the terms of the agreement give Canopy both the right and the obligation to acquire Acreage Holdings when it is legally permitted. Canopy will therefore not own Acreage Holdings today, but will own Acreage in the future. This deal is win-win: Canopy gets the chance to grow its brand and sell branded products on the world's largest cannabis market. Meanwhile, Acreage Holdings gets a cash inflow, which is important until or unless the SAFE Banking Act or STATES Act gives US cannabis companies better access to capital. Investors in Acreage will also receive a 22% premium over Wednesday's closing prices and support to the world's largest and richest cannabis company. Parties Canopy Growth is the world's largest cannabis company. Led by co-managing director Bruce Linton, Canopy has consistently had the best results in the new cannabis industry. Thanks to strong implementation, Canopy secured the first and largest billions of dollars worth of a non-cannabis company Constellation Brands (STZ), the first Canadian cannabis company in Canada to announce access to the US hemp market and order the largest market share on the growing Canadian recreational cannabis market. Because of these successes, Canopy can deserve its title as the world's most valuable cannabis company with a business value of about $ 18 billion. Source: Acreage Holdings Fourth Quarter Earnings Presentation Acreage Holdings is a multi-state operator in the United States with 25 cannabis dispensers and 87 dispensing licenses. I cover Acreage Holdings at Growth Operation and typically liked the company and especially admired a couple of their acquisitions which I thought were attractively priced. Acreage's latest quarterly results include U $ 10.5 million in revenue of 42% gross margins, with U $ 22.9 million. in pro forma revenue. The net result is not one of the most important categories in the cannabis firm's earnings due to the esoteric way Canadian companies' Canadian accounting standards work, but Acreage lost a glance of $ 217.6 million. Last quarter or U $ 2.63 / share. [19659010] Acreage's cash costs (U $ 202 million implemented last year) and Canopy Growth's deep pockets (C $ 4.1 billion in cash) mean that a pairing here could be mutually beneficial. The problem The problem with such interconnection is that cannabis is federally illegal in the United States. As a result, listed companies on major exchanges cannot own US cannabis companies, and US cannabis companies are referred to the Canadian Securities Exchange, a smaller Canadian exchange that is willing to accept state legal entities operating illegally federally. 19659010] Acreage Holdings is one of those companies acting as ACRG.U (with the U suffix indicating it trades in US dollars) on the Canadian securities exchange. The solution Canopy Growth's solution to this problem is relatively simple: they want to buy an irrevocable right and obligation to buy 100% of Acreage Holdings. "Canopy Growth Corporation and Acreage Holdings, Inc. are pleased to announce their final agreement on agreement giving Canopy Growth the right to acquire 100% of the shares in Acreage with a requirement to do so the time when cannabis production and sales become federally legal in the US ubject to obtain the necessary prior approval of the shareholders of each of Acreage and Canopy Growth, respectively, and the approval of the British Columbia Supreme Court. Following approval by Canopy Growth and Acreage shareholders as well as the Supreme British Columbia (British Columbia), according to the event agreement, Acreage Holders (as defined below) will receive an immediate aggregate payment of US $ 300 million or approximately US $ 2.55 per sub-stock share related action based on on the currently outstanding subordinate voting shares for Acreage and conversion of certain convertible securities described below. acre holders of underlying voting shares in Acre 0.5818 of a joint share of Canopy Growth for each subordinate shareholder held at the time of the completion of the transaction. In exercising the right, the total remuneration payable under the Transaction is valued at approx. DKK 3.4 billion USD on fully diluted basis. It represents a premium of 41.7% over the 30-day volume-weighted average price of the underlying voting rights on Acreage's Canadian Securities Exchange ended on April 16, 2019 (based on the exchange rate, the top cash premium and the Canopy 30-day volume-weighted average price). shares as of April 16, 2019). " Canopy Growth Press Release, April 18, 2019 If the agreement is approved by the shareholders Acreage and Canopy, Acreage shareholders will immediately receive $ 2.55 / share and their Acreage shares convert to Canopy Growth shares with a rate of 0.5818 Acreage Holdings shares per Canopy Growth share when it becomes legal to complete the transaction. Effectively, this means that stock prices will be tied to Canopy prices and vice versa. Given the closing prices April 17, Canopy's price offer reflects a 22% premium to Acreage's $ 22.49 price. Thoughts This deal is win-win. The biggest problem For MSO & # 39; s like Acreage Holdings is that they have limited access to capital .A deal with Canopy Growth will eliminate these issues, giving Canopy Growths C 4.1 billion in cash as of 31 December. the capital would allow Acreage Holdings to expand greatly faster, acquire licenses in several states and expand the store's footprint faster than competitors. Meanwhile, Canopy Growth can expand its brands – such as Tokyo Smoke and Tweed – into the US even before it is federally allowed to operate in the country. Canopy Growth will eventually acquire a network of stores that already sell Canopy branded products in Canopy brand stores the day American laws change. Once again, Canopy Growth has demonstrated their ability to be the first to offer deals among Canadian licensed manufacturers and their ability to execute offers without leaks or rumors: This agreement was unknown to the public until after opening hours on Wednesday and was announced Thursday morning. For a deal of this size, it is remarkable how few leaks are allowed and how quickly Canopy Growth was able to announce the deal from these leaks. In my opinion, Canopy Growth's performance is unmatched in the Canadian cannabis sector, and this deal is just another example. This agreement will also encourage other Canadian LPs, and possibly even industry outsiders, to look much closer to acquiring US cannabis companies. Other MSOs are like Green Thumb Holdings (OTCQX: GTBIF), Curaleaf (OTCPK: CURLF), Harvest Health (OTCQX: HRVSF) is entirely up to the news on Canopy's purchase, as each one can find more potential acquirers and investors. 19659029] Growth Operation: Helping Investors Make Intelligent Investments in the Flowering Cannabis Sector We are the largest community of cannabis investors in Search Alpha. We have recently launched in-depth comparisons by both Canadian LPs and US multinational investors for investors interested in this fast-growing sector. Join us to get daily cannabis news excluding access to my cannabis portfolio excluding depth coverage including coverage of Acreage Holdings Charlotte's Web ] CannTrust Cansotium




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