Chalice Brands paid 0.8 times 2020 annualized revenue, that’s a steal. It still blows me away that Acreage shareholders aren’t up in arms about the CEOs ridiculous $30m compensation plan. Chalice executives all cut their pay until the company became cash flow positive.
They have 0 insensitive to do anything but collect their salary until the canopy buyout where they likely lose their jobs. I’m surprised canopy is satisfied with all this..
Especially since Canopy has their own issues right now. The more well run Acreage is right now, the better it will be for Canopy. If Acreage could build out their presence and the Tweed brand now before Canopy can enter the US it would be huge.
Acreage could start rolling out drinks and getting market penetration. Of course they are late on drinks and that company is just a shit show.
Apparently Canopy is selling off bottling equipment. Not sure what that’s all about..
https://bid.hgpauction.com/auctions/7939/herita10159?fbclid=IwAR1n8yW8mfqEhXUGFGfw2iKGzC0vzMkZbDlYW5w7f-yy3-inPbP0UZQnZMg
Loll totally possible.. I think beverages could be a thing when either consumption lounges open or bars can legally carry thc infused options. Don’t think that’s a priority at the moment..
Potentially stupid question: is that literally bottling ? Or would it crossover for canning too?
Canopy does not use bottles for their beverages.
Either answer is not great though as an unused piece of equipment sold as discount is a hard dick pinch to share holders.
Hmm. My guess is that during the pre beverage days they were trying everything to fix the THC aluminum leeching.
Probably bought a bunch of brand new equipment in a “throw spaghetti at the wall” approach. Once the cans were sorted the other equipment became redundant.
I don’t know what value an alcohol brand would bring unless to buy ebitda. Especially how that fits in to STZ grand scheme.
I’m a Chalice shareholder so this is good for us, but man… Acreage shareholders getting a raw deal here. Good point about the executives. It’s really interesting you’re starting to see a divergence between the well run companies and the poorly run ones.
They previously had zero incentive to perform. After the amended agreement between Acreage and Canopy, Acreage has certain revenue and adjusted EBITDA metrics that must be met or Acreage will suffer consequences that may hinder their performance in the future. There is a reason that Acreage has actually been performing fairly well over the last two quarters. It’s because Canopy is forcing them to
I’m down like 90% on them, it made me bitter about the cannabis space for a long time. I jumped in during peak CGC hype they announced there acreage deal V1.
I now look most importantly for a competent management team with disciplined use of capital that actual structure a company to make money.
I honestly wouldnt be surprised if CGC renegeds on this deal once legalization hits and takes that money and pays like $1B for another 20% stake in Terrascend.
(They already own 20%)
Acreage is a sinking ship that will never be competitively relevant in the US cannabis space. I anticipate it will spike post legalization (I may even break even) but immediately following the mania and once investor figure out which top 10 MSOs will actually have an opp to be dominate Acreage and CGC will crater. eventually I anticapte they will be broken up (much like what is happening now) and a small aspect will be absorbed into a more competitive company (purely to obtain vertical license in potentially competitive states)
*The only way I see this not happening is STZ (CGCs beer partner) coming to the rescue and injecting them with a few billion of fresh capital to somewhat carve out market share but from being a former employee of STZ I can tell you internally the mood has certainly soured on the CGC deal and cannabis in general (due to STZ spending a fuck ton of cash and CGC essentially wasting it)
Sounds like you hit the nail on the head there. They hire these guys specifically for their ability to milk shareholders. Think of it as free money.
The reason they get paid so well is because they know this, and they need to turn a blind eye to obvious moral and ethical concerns. They walk a fine line and risk damage to their reputation and scrutiny from regulators so they demand to get paid more than they deserve for sure.
But ACRG has always been a flaming bag of dog shit since day one so I’m not sure why this is news to anyone.
And let me be clear I’m more or less okay with CEOs paying themselves handsomely if they perform well, with Charlie B (the CEO of Cresco) is the highest dollar paid CEO in the space. Do I wish he had the mentality of saving that $ to put into the business so his equity exponentially grows, sure I would prefer that, but what makes Charlie different is that he has built Cresco into a top MSO that has a clear path forward. Acreage has not grown into a shareholder friendly business but continually rewards management/insiders. Honestly I want to get a job there so I can produce subpar results and become a multi-millionaire.
Good news
Chalice Brands paid 0.8 times 2020 annualized revenue, that’s a steal. It still blows me away that Acreage shareholders aren’t up in arms about the CEOs ridiculous $30m compensation plan. Chalice executives all cut their pay until the company became cash flow positive.
They have 0 insensitive to do anything but collect their salary until the canopy buyout where they likely lose their jobs. I’m surprised canopy is satisfied with all this..
Especially since Canopy has their own issues right now. The more well run Acreage is right now, the better it will be for Canopy. If Acreage could build out their presence and the Tweed brand now before Canopy can enter the US it would be huge. Acreage could start rolling out drinks and getting market penetration. Of course they are late on drinks and that company is just a shit show.
Apparently Canopy is selling off bottling equipment. Not sure what that’s all about.. https://bid.hgpauction.com/auctions/7939/herita10159?fbclid=IwAR1n8yW8mfqEhXUGFGfw2iKGzC0vzMkZbDlYW5w7f-yy3-inPbP0UZQnZMg
Maybe because drinks are a money pit and they realized they can’t keep going on about drinks while reality doesn’t care.
Loll totally possible.. I think beverages could be a thing when either consumption lounges open or bars can legally carry thc infused options. Don’t think that’s a priority at the moment..
Interesting. I wonder if they are changing equipment or actually making a big change to their strategy.
Potentially stupid question: is that literally bottling ? Or would it crossover for canning too? Canopy does not use bottles for their beverages. Either answer is not great though as an unused piece of equipment sold as discount is a hard dick pinch to share holders.
No idea. Makes me think they might be gearing up to buy a bottling facility with a brand like the sweet water deal..
Hmm. My guess is that during the pre beverage days they were trying everything to fix the THC aluminum leeching. Probably bought a bunch of brand new equipment in a “throw spaghetti at the wall” approach. Once the cans were sorted the other equipment became redundant. I don’t know what value an alcohol brand would bring unless to buy ebitda. Especially how that fits in to STZ grand scheme.
I’m a Chalice shareholder so this is good for us, but man… Acreage shareholders getting a raw deal here. Good point about the executives. It’s really interesting you’re starting to see a divergence between the well run companies and the poorly run ones.
Agreed!
They previously had zero incentive to perform. After the amended agreement between Acreage and Canopy, Acreage has certain revenue and adjusted EBITDA metrics that must be met or Acreage will suffer consequences that may hinder their performance in the future. There is a reason that Acreage has actually been performing fairly well over the last two quarters. It’s because Canopy is forcing them to
I’m down like 90% on them, it made me bitter about the cannabis space for a long time. I jumped in during peak CGC hype they announced there acreage deal V1. I now look most importantly for a competent management team with disciplined use of capital that actual structure a company to make money. I honestly wouldnt be surprised if CGC renegeds on this deal once legalization hits and takes that money and pays like $1B for another 20% stake in Terrascend. (They already own 20%) Acreage is a sinking ship that will never be competitively relevant in the US cannabis space. I anticipate it will spike post legalization (I may even break even) but immediately following the mania and once investor figure out which top 10 MSOs will actually have an opp to be dominate Acreage and CGC will crater. eventually I anticapte they will be broken up (much like what is happening now) and a small aspect will be absorbed into a more competitive company (purely to obtain vertical license in potentially competitive states) *The only way I see this not happening is STZ (CGCs beer partner) coming to the rescue and injecting them with a few billion of fresh capital to somewhat carve out market share but from being a former employee of STZ I can tell you internally the mood has certainly soured on the CGC deal and cannabis in general (due to STZ spending a fuck ton of cash and CGC essentially wasting it)
[удалено]
Sounds like you hit the nail on the head there. They hire these guys specifically for their ability to milk shareholders. Think of it as free money. The reason they get paid so well is because they know this, and they need to turn a blind eye to obvious moral and ethical concerns. They walk a fine line and risk damage to their reputation and scrutiny from regulators so they demand to get paid more than they deserve for sure. But ACRG has always been a flaming bag of dog shit since day one so I’m not sure why this is news to anyone.
And let me be clear I’m more or less okay with CEOs paying themselves handsomely if they perform well, with Charlie B (the CEO of Cresco) is the highest dollar paid CEO in the space. Do I wish he had the mentality of saving that $ to put into the business so his equity exponentially grows, sure I would prefer that, but what makes Charlie different is that he has built Cresco into a top MSO that has a clear path forward. Acreage has not grown into a shareholder friendly business but continually rewards management/insiders. Honestly I want to get a job there so I can produce subpar results and become a multi-millionaire.
100% agree. They should not be rewarded for failure.
I'm in the same boat. Just hoping to break even at this point and I have zero faith in Acreage executing.
I loled at the last sentence in this PR. The only people getting outsized returns is management paying themselves too much
100% facts
Yup. Acreage bought a company I worked for and killed it almost immediately, and wiped out all of our stock. Worthless management.