'CGC' to buy 'Acreage Holdings' for 3.4 billion if US legalized MJ... Your move USA...

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Canadian pot company Canopy Growth last week announced it entered an agreement to purchase Acreage Holdings, a US pot company, for $3.4 billion conditional on the federal legalization of marijuana in the US.
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https://www.businessinsider.com/canopy-growth-acreage-holdings-deal-could-spur-cannabis-ma-boom-2019-4

ChiefRunningPhist said:

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Canadian pot company Canopy Growth last week announced it entered an agreement to purchase Acreage Holdings, a US pot company, for $3.4 billion conditional on the federal legalization of marijuana in the US.
"
https://www.businessinsider.com/canopy-growth-acreage-holdings-deal-could-spur-cannabis-ma-boom-2019-4

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What is it that I'm missing?

Just a few years after legalizing, Oregon grows more pot than it can possibly consume. In just four plants, I harvested 7 pounds of very good pot, enough to last me about 60 years at my level of consumption. Total cost was about 60 bucks and fifty was spent on good local genetics. Dispensaries are selling weed for a buck a gram.

Where are the big bucks to be made if, along with the nation's legalizing of sales, personal grows can also be done?

A billion to Trimp; done deal.

Problem with that is that it'll never happen.

States will legalize it one by one as they are and that'll be it. By the time the federal government gets around to doing anything it'll be a moot point with no meaning.

And that is still decades away.

Ya oversupply will effect demand. But I think we can all agree that as long as there is varying levels of quality, so will there always be a demand. I don't know maybe I'm wrong...

Potatoes are a huge industry. Look at how McDonald's gets you to pay $$$ for a bit of a potato and some oil. The fact that people can throw potatoes out in there backyards and have enough for a year or so doesn't kill the potato industry.

The significance that I see is the pitting of the transaction against the US legalizing. US is dominated by money, so it would add additional incentive to any one on wall street with the ability to influence congress, and I think those 2 are pretty common bed-mates..

Unclebaldrick said:

A billion to Trimp; done deal.

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I use to think Trump would win the 2020 by muddying up his BS by running on legalizing pot. My nightmare is him succeeding...

TacoMac said:

Problem with that is that it'll never happen.

States will legalize it one by one as they are and that'll be it. By the time the federal government gets around to doing anything it'll be a moot point with no meaning.

And that is still decades away.

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It can't be legal until the Feds decriminalize it. Last year we saw Federal raids in legal states. Also, when he held power, Sessions was threatening a federal crackdown in Oregon because we haven't done enough to meet his demands for tracking the stuff.

We still need Federal actions to decriminalize it.

ChiefRunningPhist said:

Ya oversupply will effect demand. But I think we can all agree that as long as there is varying levels of quality, so will there always be a demand. I don't know maybe I'm wrong...

Potatoes are a huge industry. Look at how McDonald's gets you to pay $$$ for a bit of a potato and some oil. The fact that people can throw potatoes out in there backyards and have enough for a year or so doesn't kill the potato industry.

The significance that I see is the pitting of the transaction against the US legalizing. US is dominated by money, so it would add additional incentive to any one on wall street with the ability to influence congress, and I think those 2 are pretty common bed-mates..

Click to expand...

I agree there will always be demand for top shelf weed. The competition for that consumer price will be stiff. Competition for even the mid shelf will be high too.

I could be wrong about where prices are going to go once legalize is implemented. I've heard that California's dispensaries are selling low quality weed. I haven't bought any of the low price stuff in Oregon so it could be that the low priced stuff isn't even worth the low price. I tried growing autoflower and it wasn't very good either at least, not the one time I tried it. That said, it's not hard to oversupply with good stuff for not much cost if you can garden and have good seed. Also if you can grow tomatoes you can grow good weed.

This is all to say that once legalize happens, the producers won't be able to control the price all that much IF people can do legal grows. We have to include that right when we legalize. I think the days of $200/oz for good but not great weed at the consumer level will be over. For that price it would have to be absolute fire. And yes, people will pay for it. We pay 6 bucks for a loaf of really good artisan bread too.