IB Net Payout Yields Model

Acreage Provides Path Into Canopy Growth

Acreage offers a path to owing double the current position of Canopy Growth while offering a better valuation.
The Acreage/Canopy Growth deal signaled a peak in the market while the ensuing collapse might signal the bottom.
Acreage offers a solid standalone value assuming the deal never closes.
The decision for Canopy Growth (CGC) to pay $300 million for a call option to purchase Acreage Holdings (OTCQX:ACRGF) has been a complete disaster. Not only has the cannabis market collapsed, but the stock market doesn't even see the deal closing in a reasonable enough time. Despite all of the mistakes of Canopy Growth, the Canadian cannabis giant has a pristine balance sheet to support future growth and reward shareholders that purchase the stock on the cheap via Acreage.
Read the full article on Seeking Alpha. 

Disclosure: No position mentioned. Please review the disclaimer page for more details.


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