RE:Letter of Intent Clarificationwell said, bumping this back up
makeshift wrote:
Hi. Long time Stockhouse reader, only recently started an account to tune out some of the noise. I thought I would help clarify the LOI since the messages on this board are a bit all over the place.
Full disclosure, I own many shares in TFS.
I recently emailed TFS directly and received a very prompt response. I'm simply repeating what I've been told.
1. TFS shares will consolidate 200 to 1. So if the share price is 0.07 cents when it consolidates, you'll own 1 share worth $14.
2. Telferscot Resources will buy out Canntab shares at a rate of 4 TFS shares to 1 Canntab share. This has NOTHING to do with our TFS shares. It's how Telferscot is acquiring Canntab. Here, 1.6.1 is most likely correct about Canntab wanting to use TFS to go public. Read his/her post.
3. Canntab will raise $5 million by issuing 1,250,000 of their own shares much like a PP (possibly even a PP). The $4 price is set to attract investors and does not reflect the actual share price. It's usually set lower so investors will earn their money back. Again, this has nothing to do with our TFS shares but a condition of acquiring Canntab.
4. The 24.4 million shares resulting is a combination of the existing TFS shares (consolidated 200:1) and the acquired Canntab shares.
So at the current share price of 0.07 cents... is Canntab worth $14 a share and should their market cap be roughly $340 million? I look at other mj companies with a lot less going on... no license, facility under construction, etc. easily having market caps of $340 million+. Canntab has a definitive deal with Emblem (already licensed) and more.
GLTA