OTCPK:NWKRF - Post by User
Post by
true377on Nov 22, 2017 10:34am
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Post# 27011058
consensus is no HIP buyout
consensus is no HIP buyout 2017-11-22 06:39 ET - In the News
See In the News (C-CMED) CanniMed Therapeutics Inc
The Globe and Mail reports in its Wednesday, Nov. 22, edition that Echelon Wealth Partners analyst Russell Stanley has boosted his share target for CanniMed Therapeutics ($19.68). The Globe's David Leeder writes in the Eye On Equities column that on Monday, Aurora Cannabis said it is moving ahead with plans to launch a hostile takeover bid to acquire CanniMed. It plans to present its all-share offer to CanniMed investors later this week. Mr. Stanley says: ACB intends to offer approximately 4.5 shares of ACB per share of CMED, with a price cap of $24 per share of CMED. ACB noted that it has obtained irrevocable lock-up agreements from CMED shareholders representing 38 per cent of the outstanding stock. The agreements require that these shareholders also vote against any proposed action by the CMED board, so obtaining CMED shareholder approval for the HIP [Newstrike Resources] acquisition may not be a slam dunk." On Friday CanniMed announced a $238-million deal to acquire Newstrike. Mr. Stanley says Newstrike "would add complementary brands and capacity to service the recreational market." Keeping a "speculative buy" rating, Mr. Stanley hiked his share target for CanniMed to $22, which is the consensus, from $14.