CannaRoyalty Corp C.CRZ

Couldn't Resist

[retiredcf]

The gap is now in excess of $2.50 so I had to add more. The only thing I can think of is that investors have seen this "implied" value of $12.68 and think that's the value of what they will receive. But $18.35 x .8428 = $15.46. GLTA


The Transaction will be effected by way of a plan of arrangement under the laws of the Province of Ontario. Under the terms of the Agreement, Cresco Labs will acquire all of the issued and outstanding Origin House Shares, with each holder of Origin House common shares receiving 0.8428 Cresco Labs Shares for each Origin House Share (and each holder of an Origin House proportionate voting share receiving 84.28 Cresco Labs Shares for each proportionate voting share held), which implies a price per Origin House Share of C$12.68 (on an as converted basis), representing a total consideration of approximately C$1.1 billion (on a fully-diluted). After giving effect to the Transaction, Origin House Shareholders will hold approximately 20% ownership in the pro forma entity (on a pro forma fully-diluted and as converted basis).

[RockMaschine]

S&P at new all time highs, could be a melt up now. Missed my chance to rebuy low $11 and thinking this could be the start of a brief run. Buying back in a little a market cause now that CL is up 10% and OH hasnt moved makes this a steal.

[Tradertimestwo]

Agreed. Massive discount. Match that with upcoming massive earnings on the 29th for OH. br />

[Mike411Ontario]

Would you guys agree with this math and statement?  (the example uses 500 shares) Cresco Labs value is 20% higher than the conversion rate for the OH shares.   Also, the closing date is the end of June & the conversion would be in July.  tx Mike Cresco Labs  0.8428        

[Oldweed]

The conversion is good, the way I look at the percentage is: 4550 x 100 / 5452.92 = 83.44% Gives me 16.54% discount 

[Mike411Ontario]

OK thx that makes sense.  So this is similar to the MPX conversion to iAnthus.  I held MPX for a few months and did ok.  If the MPX shares went dn it didn't matter they would convert.  Same situation here.  Seems like an add and hold. GLTA Mike

[Oldweed]

Yep for sure that conversion doesn’t change, the only SP that matters at this point is CL.

[Tradertimestwo]

This is true. But also a reason to buy a bit of Cresco to support current SP. By doing so you are supporting the future OH converted SP. But the sooner OH closes the gap up the better. Shouldnt be too hard since financials are monday and should be great.

[stockvet]

I'm not sure why it hasn't moved accordingly, because I am convinced this is a sure deal. It will happen I have no doubt about it. However, with OH financials coming up (what are expectations? I think maybe 12 million), massive CL share unlock on June 1st and CL filing for a short form prospectus, who knows if the market is pricing in CL's likely drop in SP by the time the deal is

[stockvet]

With a Q4 of 7.9M, I was way off. California's regulartory messups have really impeded organic growth. We'll see how the market reacts. https://www.newswire.ca/news-releases/origin-house-announces-financial-results-for-the-fourth-quarter-and-fiscal-year-ended-december-31-2018-818800790.html

[qzedon]

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[falconer108]

Unfortunately, not reacting well so far.

[retiredcf]

If the deal closed right now, OH would get $14.66 worth of CL stock. So it goes without saying that CL remains the key and OH will simply go along for the ride. It's highly unlikely that OH will go much lower because once the finish line is in view, OH will rapidly close the spread between the two stocks so investors don't want to miss out. GLTA

[tetovari]

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[retiredcf]

Spam for a stock that has fallen from $0.95 to $0.04 over the past 2 years. GLTA

[tetovari]

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