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Canopy Growth Just Admitted Massive Failures

Canopy Growth remains locked out of the major cannabis opportunities in the U.S.
The Acreage deal is failing due to a lack of funding for the MSO.
The company is still aggressively spending chasing smaller global opportunities in competitive markets.
The stock is far overvalued here with a $6.5 billion valuation, over 16x FY21 sales estimates.
On June 22, Canopy Growth (CGC) hosted a virtual investor meeting where the company discussed the future of cannabis in great detail. Whether intentional or not, the large Canadian cannabis company highlighted how the business model continues to waste too much money chasing the wrong markets. My investment thesis remains highly negative on the stock here with a market cap of nearly $6.5 billion and a long road to profits ahead.
Read the full article on Seeking Alpha. 
Disclosure: No position. Please review the disclaimer page for more details.

Update 6/25
Canopy Growth just modified the deal with Acreage Holdings (ACRGF) to drastically lower the value. 
The original deal, announced in April 2019 and valued at ~$3.4B, consisted of $300M in cash and 0.5818 of a CGC common share for each ACRGF share subject to the federal legalization of cannabis in the U.S. (triggering event).
The new contract specifies a $37.5M upfront cash payment and 0.3048 of a CGC common share for each new Acreage Fixed Share, each representing 70% of an existing Acreage share.
Acreage will also issue Floating Shares representing 30% of an existing Acreage share which CGC "may acquire" in the future based on the occurrence or waiver of the triggering event for a minimum of $6.41.
CGC has agreed to loan $100M to Acreage subsidiary Acreage Hempco, an initial $50M at 6.1% interest and the remaining $50M subject to conditions. The loan will be in the form of a secured debenture maturing in 10 years

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