Post by
Quietinvestor on Jan 08, 2021 3:39pm
DIFFICUL TO UNDERSTAND WITHOUT MATERIAL CHANGE
Yes I accept that there was news from the US that propelled the SP, as it did with others; yet they are flat today, the parent company Canopy is in the red
However, rising 57% in two-three days is difficult to understand. Either there is something behind this rise that we mere mortals are not aware of, or the trading world just woke up to Acreage.
GLTA
Comment by
Artemis on Jan 08, 2021 4:23pm
You don't think it's just responding to news from the US? Both the new Georgia Senators are cannabis-friendly, and that tips the political balance towards a triggering event.
Comment by
Quietinvestor on Jan 08, 2021 6:58pm
Understood but then that logic should apply to other US MSOs - Grren Themb, Columbia, AYR all down. None of them including CURA etc had such a rise over past 3 days. Nevertheless all good. will see if SP holds next week GLTA,
Comment by
lou444 on Jan 08, 2021 4:58pm
really you haven't heard or seen the buyout offer from Canopy growth (CGC) subject to triggering event. Acreage is worth $9 US o(0.305 x$30) and it's trading at $5+
Comment by
Quietinvestor on Jan 08, 2021 7:01pm
Understood and agree. Read the deal in detail a number of times on SEDAR. If what you are saying is true, next week should see the same SP increase. We will see GLTA
Comment by
lou444 on Jan 08, 2021 10:04pm
The deal is real and documented in SEDAR and on the company website. A summary is included in most press releases issued by Acreage. The share price will fluctuate but eventually as the triggering event becomes a reality the fixed share ACRHF will be track CGC stock. That ratio was set 0.305. This means Acreage should be trading at $9 based on prevalent market prices for Canopy
Comment by
lou444 on Jan 10, 2021 6:21pm
Dare I say that the floating shares $ACRDF may be quite attractive here too. Should Canopy $CGC decides to exercise its option to acquire those shares as well that would represent more than 100% windfall from the current market price. The deal sets a minimum price for the D shares at $6.41.( it could be higher depending on market conditions)