2019年10月29日星期二

The Key Reason Canopy Dumped $6.3 Million in AusCann Stock

 
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Cannabis Profits Daily
Tuesday, October 29, 2019
Trend Spotting: Australia Isn't Ready for Big Investments Right Now
In the past two weeks, two big Canadian producers have pulled out of the country, and a third is turning to outside capital to build a business there.

It's an indication that the big players are frustrated with the slow pace of the Australian market and are looking for lucrative opportunities that give shareholders faster results.

On October 13, Canopy Growth Corp. (NYSE: CGC) sold its entire stake (13.2% interest) in AusCann Group Holdings Ltd. (OTC: ACNNF). That sale comes only four months after Canopy increased its stake in the company.

Two days later, Cronos Group Inc. (Nasdaq: CRON) announced that it was creating a public listing for its joint venture in Australia. The company - Cronos Australia - sold one third of itself to a group of pre-selected shareholders.

In this case, Cronos did not sell its stock.

But Cronos has over $2 billion in cash on its balance sheet; if it wanted to increase its investment in Australia, it could have done so without outside shareholders.

The third blow came on October 25.

Aphria Inc. (NYSE: APHA) dumped its 15.7% stake in Althea, its Australian play.

It means Australia isn't ready for the big time, and I'm going to show you how that affects your investments...
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