post from investor hub- I spent a lot of time researching M&A and specifically how this is playing out versus others. The Curaleaf renegotiation with Secret really scared people; the problem is, that was a public company buying a privately held company, and an entirely different deal. Also, they cited "market changes" (i think) as a reason for their renegotiation. That is a BS "catch all" term - it could be "we didnt manage our money right and things slowed down..." (technically that is a market change/headwind). To base anything about ORHOF/CRLBF on this deal is fundamentally wrong.
- Renegotiation of the terms of this deal would be considered a material change and require disclosure and a revote. As a shareholder that voted on the initial deal, and added since then, I am adding on the terms of that deal. Should the deal change and i vote against it, I am entitled to be made whole. Any type of restructuring would really open up ORHOF/CRLBF to a shitload of lawsuits and delay the deal significantly.
- The pricing and structure of the conversion was based on the 30 day weighted moving average. M&A always brings shareprice volatility due to the uncertainty and fickle investors. Combine that with the low volume and sector road-bumps, and it really makes sense how we are at this price. DO NOT quote me on this, and i've searched for the audio of the call but cant find it, but i seem to remember someone making a comment on the call that "the next few months will be a very bumpy road" back in April.
- This M&A is critical to the strategy of both companies. To cost of opening themselves up to the legal problems, lack of shareholder trust, potential funding issues, missed market penetration, missed strategic advantages, and OVERALL, missing out on being the biggest MSO in the USA and obtaining a FIRST MOVER POSITION would far outweigh the benefits of renegotiating anything.
- For what its worth, I work at a FF500 company that has people that do M&A every day; last week I laid this all out in front of a few people over coffee to understand the likelyhood of ANY hiccup. The outcome of the discussion was, considering the actual financial strengths of each company, the fact that the shareprice does not reflect the company and asset value, and short action, it would be extremely unlikely that anything change. Following this conversation I sold my 2200 CRLBF at 6.60 and am flipping into my ORHOF pile of shares.
- The term "Mutually Agreeable", that shorts grabbed onto, is boilerplate legal jargon. HOWEVER, it does mean, exactly, what it says. The initial offer was accepted long ago, and now they are ironing out the finer details and signing off on them. This is just like buying a house (a very expensive house). You make the initial offer, you go thru inspections and review, you then sign paperwork. The paperwork and T&C is way more technical and way more involved. It can include the negotiation of severance packages, bonuses, facility leasing/title transfers, etc.
- These are large companies; ignore their shareprice and consider the complexity of the merger. This is not something that gets knocked out over night. Additionally, consider what is ahead for Cresco + Origin. As they continue to deliver on things that other companies have been unsuccessful at, it creates a reputation of transparency and credibility.
In closing, I re-listened to all the calls and content over the past few weeks and I have no doubt this will close. I encourage everyone that has any doubts to do the same. The misinformation and lies that have poured out are all based on speculation and are unfounded. I have yet to have a short provide me any convincing material to show that this is headed anywhere else other than to closing.