Chalice Brands Ltd CHALF

RE:RE:screaming deal

[slimjim11]

I think we're near the end of the rough ride. (1) With year end disclosures, GLH need to show us exactly what we bought in BMF. The board of directors aren't foolish. At the closing of the deal in Match 2016, the pesticide issue at BMF was well known, and the board chose to conclude the deal. So we need to see more than $15 million of value despite the pesticide issue. And Robinson told us when announcing the deal in January that it would be accretive, so we're looking for more than $15 million of value. (2) Anon is increasingly desperate to bash the share price. Yesterday's close saw Anon move the share price by over 4% in the last minute of trading. Deliberately painting the tape raises the suspicions of regulators, so doing it is a sign of desperation. (3) The cannabis markets in Colorado and Washington continue to expand, and we can expect our solid business of 3Q15 has grown in 4Q15 and 1Q16. The 1Q16 results should be announced within 6 weeks. (4) nationally, cannabis is seeing a dramatic increase in support for medical use and decriminalization. This is a tailwind for our business, and augers well for future prospects in additional US states. (5) the market capitalization is very low compared to Q315 revenues, and we have every reason to believe revenues have grown since then. GLH is a cheap company among peers. As institutional investors choose to enter the MJ space, GLH will crop up as an attractive opportunity. As the MJ investing space is new, institutional money will be flowing predominantly in one direction: into the industry. There are few or no institutional investors already invested who may be leaving the industry. The net institutional funds flow will be into GLH shares, which will dry up any Anon selling quickly. (6) The total float of GLH is small. Less than a rounding error for a single large hedge fund would buy all the shares Anon can sell. I am long GL, and expect the next six weeks will see the last six months' downtrend broken. Then the chartists will go crazy trying to buy illiquid shares. That's fine if your appetite is a few hundred shares. For anyone with a larger appetite, they have to be buying now before the sentiment tide turns.