Newstrike Brands Ltd NWKRF

Did I read this correctly?

[Gulruthina]

"CanniMed is offering 33 of its shares for every 1,000 shares of Newstrike, with the companies trying to close the deal by January. "
 

Does that mean all Newstrike shareholders will receive 33 "ADDITIONAL" CanniMed shares for every 1000 shares they own? or the 1000 Newstrike shares gets "converted" to 33 CanniMed shares?

[Winniethesadone]

CMED 33 x $26.95 = $889.35 HIP 1000 x $1.51 = $1510.00 HIP investors lose $620.65 for every 1000 shares converted to CMED

[Gulruthina]

So Cannimed will not issue new shares to newstrike ltd shareholders instead newstrike shareholders will get their current newstrike shares converted to 33 cannimed shares for every 1000 they own in newstrike? Isn't that a bad deal for the shareholders. Why would they want to go through with that

[Extalliones]

Correct.  And that's the problem.  It IS a bad deal now.  I get what Cam is saying, and I agree with him that being with CMED would be amazing for HIP.  I just don't think it's going to happen at this valuation.  If we were to take that .60 share price hit, we would lose 40% of our value.  We would need CMED to rise that much after acquisition just to make

[Gulruthina]

but if CMED is issuing shares to HIP shareholders isnt that free money? Since they get CMED shares aside from their current HIP shares?

[Extalliones]

No.  Your HIP shares will be converted into CMED shares.  Meaning you will no longer hold shares in HIP.  Only in CMED - Newstrike will continue to exist as a subsidiary of CMED, but CMED will hold all of its shares, and you will only hold shares in CMED. 

[Gulruthina]

That's bad! might as sell my HIP shares now

[Gulruthina]

It feels like HIP shareholders are getting ripped off so if a HIP shareholder owns 50,000 shares x 1.51  =  75,500 50 x 33 =  1650 CMED x 26.95 = 44,467.5 The HIP shareholder is losing $$$-31032.5 BS!

[commeilfaut]

it looks like you guys don',,,,,t even know what you're talking about....

[Gulruthina]

Please explain 

[commeilfaut]

Icannot explain it myself! For that i need more details from the company, and you guys just don't have those details. When i don't know something , i just don't take the risk of  missleading people on boards with the wrong information.

[Gulruthina]

TORONTO, ONTARIO--(Marketwired - Nov. 27, 2017) - Newstrike Resources Ltd. (TSX VENTURE:HIP) ("Newstrike" or the "Company"), together with its wholly-owned subsidiary, Up Cannabis Inc. ("Up Cannabis"), a licensed producer of cannabis under the Access to Cannabis for Medical Purposes Regulations, is issuing the following statement to provide additional

[commeilfaut]

the price of both stocks is fluctuating so of course those numbers will change also depending of the worth of each stocks on the market.

[commeilfaut]

so if the price of HIP goes up they'll have to give us more share of CMED, it makes sens to me.

[Gulruthina]

What you said does not say in the agreement 

[commeilfaut]

indeed i agree but if the price of CMED wen up to lets say 150$/ share do you think they would still give us 33 shares/ 1000 shares? it goes both ways....

[Gulruthina]

Shareholders will benefit more from HIP shares since there are shareholders who bought the stock at a 1< cents and getting CMED shares will put them on the disadvantage because they already missed out on the CMED gains when it was going up 1< until it hit the current 26.7$.  On the otherhand if you bought HIP 1< and it goes up to 3-5 dollars you will make more money than getting

[Raiders11]

I will not vote yes to that deal it is a joke!

[Mjman17]

Gulruthina, you math is correct if CMED-HIP deal go through. In this case, HIP share owners will lose significant money, unless at that tiem CMED stock price reached over $100+ which is impposible

[BestNewApp]

This post has been removed in accordance with Community Policy

[Gulruthina]

Yes, exactly.. CMED getting to 100 is possible but that will take a long time compare to HIP getting to 5$

[Goldy90]

The deal wont go through, ACB is going to buy out CMED. HIP will do their own thing and do great, then down the road possible buy out by ACB or WEED.

[CallMeRocketMan]

I sold off my HIP shares today. I love this stock but the CMED deal crushes the stock price if it goes thru. Best of luck the rest of the way guys!! I might be back later however after everything settles down with the merger bull$hit. I honestly just want this stock too stay as HIP only w no merger, when i bought this HIP stock, that was the way it was. Bought more Inmed for another RocketRide in

[Londondriveguy]

And what happens if Aurora buys Cannimed? Wow, this sh!t is getting crazy!

[Gulruthina]

It would be a lot smarter to sell your HIP shares before the exhange/acquisition happen and buy CMED right after (if you want) so that you can benefit from your 31,032.5$ on that example!

[reddawg77]

And if acb takes over cmed the price is capped at 24 so your 50 x 33 =  1650 CMED x 26.95 = 44,467.5 would turn into 50 x 33 =  1650 CMED x 24 =  39,600

[Charles86]

As far as i understands acb wants nothing to do with hip. If they acquire cmed, hip is off the table...according to acb

[commeilfaut]

''There can be no assurance that the proposed acquisition of Newstrike by CanniMed will occur, or that it will occur on the terms and conditions contemplated in this news release. The proposed transaction could be modified, restructured or terminated'' can you guys read? ididots!

[Gulruthina]

What are you talking about? Also what is "ididots"?

[commeilfaut]

ididots means retarded...i guy like you could not understand

[Gulruthina]

If you say so.. hahaha

[inthesmoke]

yep i can read and spell........ like when i spell idiot ......... not ididots.... Ya moron!