Acreage Holdings (OTCMKTS:ACRGF), the New York City-based cannabis company recently accepted Canopy Growth’s (NYSE:CGC) $3.4 billion offer to merge once the U.S. government legalizes cannabis at the federal level. The tentative deal did wonders for both Acreage and CGC stock.
Marcato Capital Management owns 2.7% of Acreage. It opposes the transaction on the grounds the valuation isn’t nearly enough. The news has put a tiny dent in both company’s stock prices. Long term, I believe Marcato’s temper tantrum will do little to CGC stock, but hurt Acreage’s stock immensely. Here’s why.
Caving to Marcato Would Do Irreparable Harm to Acreage Stock
Is it just me or are activist investors getting way too much freedom these days to pound their drum when investments they’ve made aren’t going as planned?
Since when did a 2.7% ownership interest in any public company represent a quorum?
It’s not even close. It’s like a neighbor complaining about the sale of a property next door to a known developer. You can scream and shout and protest all you want but your