Medmen Enterprises Inc MMNFQ

RE:RE:RE:RE:RE:When the halt be lifted!

[ConnectTheDot1]

In the small cap world, some money managers get in pp for the warrants, and after the four months period, sell the shares and let the warrants ride with free-risk...till the expiration or the exercise! I anticipate that the price will retreat to the financing deal till deal closed then up...As Aphria, the retreat to the financing around 11$ before flying over 21$!!!

KushMan wrote: Correction: It's an additional $46.84M into the company coffers and the consideration has to be be cut down by 50%

So if you take down 1000 units you get 1000 shares + the right to exercise 500 warrants at $6.87..

The rest of the risk factors stay in tact.

KushMan wrote: Do some math..

First of all the deal hasn't closed yet (Sept/28) and I'm pretty sure there will be the standard 4 month restrictive hold on it once the financing pkg closes nonetheless the ideal situation would be to get those warrants for free.

So how do you do it? You gotta wait until the share value is hits $12.37  

Once it reaches  $6.87 you have a choice.
 
Sell your $5.50 PP shares, keep the $1.37 profit and forget the warrants.

If you think the share price is going to go NORTH of  $6.87 (ie: $12.37) you wait it out.

By all rights if I was going to do it I would certainly want the stock price well north of $7 bucks to insure a decent profit margin before I shorted the stock against delivery of the $5.50 shares and exercised the warrants at $6.87

The warrants really ARE NOT free unless the the share price is $12.37 or a two bagger ($6.87 x2) before you get the gears rolling. 

Anyway you look at it, your cash outlay will be $6.87/share no matter how you calculate and or look at it.

Where the benefit of exercising the warrant is that you save the out of pocket expense of coming up with the 1.37 spread between PP price and warrant exercise price. 

Only works if the current share price is well NORTH of the warrant exercise price and there is a decent margin to me made otherwise forget the warrants.

SO, that being said, if the company wants the additional $98M in the kitty, they better come up with one hell of story to make it a no brainer for the PP investor :))))))))))

Me, I'm going to sit back and go along for this ride and it's gonna be a good one sooner or later coz this is a tight share issue and it can go anywhere quickly... ;))))

inkedtj wrote: What do you predict for tomorrow Kushman?  Like I said, I’ve seen bought financing news make stocks soar. Raises a ton of cash and takes all the risk off the company. It’s a no brainer.