Newstrike Brands Ltd NWKRF

Heres's how I am playing this. A REAL post.

[run33]

Ignore all the garbage on this board and read this.

These guys have $120M cash in the bank, and according to the Winter's prospectus, only requires $30M to complete the build up to 25,000KG. 

So other than G&A, where's the other $90M going?

I believe they are pivoting - selling off the asset that would allow further growing expansion, and renaming the company NewStrike Brands.

Pivoting into what? I'm not sure exactly, but it seems to me like these guys care more about making money off the paper than they do a profitable company - BOTH major PP's were short-forms that were completed by shorting the stock and covering with the placement.

They want to make money off another major run in the stock, but with the market cap already hovering around $550M at a buck, where would they go from there?

So you announce a share rollback, this achieves the goal of lopping the share price in half - or in this case 60%. This is now a great place to now run the stock from, there is much more runway.

Now our friends need to get papered up for the run - how's that going to be achieved? Watch for them to acquire a couple of other smaller companies in order to load their buddies up with stock. This will happen following the rollback, which I think they will go 5:1.

Once we head into Fall, I think this easily does $1.00-$1.50 (pre-rollback). These guys have some firepower - they cranked it to $3.30 last Winter (a $1.3B cap!!) with only $13M in cash in the bank at the time. IMPRESSIVE.

So, do you buy the common stock here? You could. A double sounds boring though doesn't it?


I think the way to play this is the 'A' series warrants.   HIP.WT.A     (*NOT* HIP.WT)

Why? You get *5 YEARS* time value, with a strike price of only $1.00  - for the price of a dime, right here, right now. These things should be trading at $.20+ right now, today - but they're not. Use a warrant calculator to see what I mean.

If the common stock does $1-$1.50 (pre rollback) then you are looking at $.50-$1.00 for the 'A' warrants.

Doesn't a 10x bagger sound so much more appealing?


If I owned any common stock in this, I'd be ditching them for those 'A" warrants right now.

What happens if the stock goes NOWHERE and is still $.43 cents after the winter?

Well, because of the 5 year time on the warrants, little to no value is lost.

What you want in a trade, is a worthy RISK vs. REWARD. If you believe in the marijuana sector moving this winter, I cannot find a better trade. But if you find one, let me know.

GOOD LUCK TO ALL.


Full Disclosure : I own the 'A' warrants. And no, I won't be flipping for a penny.

[tsxbull]

Interesting post indeed, thanks for sharing.   @run33 - Where do you go to find the details/restrictions/rights, etc.. regarding warrants such as HIP.WT.A?? Thx and GLTA!

[donkey42]

HIP is the most oversold LP in the sector and its due for a bounce, idc how many times i have to avg down come october this will be doubling easy

[FatOfTheLand]

Check july 3rd filing on SEDAR

[silkroad007]

Great post, ive said this many times over.  To friends and on this board.  Show me a better 10 bagger. Only question I have is are the A.Warrants worth half of a unit.  Such that when you use a warrant calculator you have to divide it by 2. I own both HIP.Wt and HIP.WT.A see how it shakes out but looking for an oppourtunity to fully switch to A warrants.  Just been to low

[Angelized]

This post has been removed in accordance with Community Policy

[run33]

Nope... one warrant is one share. "Each Warrant shall entitle the Holder thereof to receive, upon payment of the Exercise Price, and subject to adjustment and penalties in certain circumstances, one Common Share at any time prior to the Expiry Time upon the terms and conditions herein set forth;" Cut and paste from the prospectus. And yes they will be adjusted, at the same ratio as

[Angelized]

This post has been removed in accordance with Community Policy

[Angelized]

This post has been removed in accordance with Community Policy

[run33]

If that's what you believe, then you need to find yourself a financial advisor, or buy GICs.

[TruthAboutHip]

I would check that out to be certain that you understand the language which is a bit twisty. How do others read that ? How many warrants to buy a common share and at what strike price ? I really like the final "subject to adjustment in certain events" clause. There are so many of these self-crafted loopholes in their documents that even a seasoned lawyer might be pulling out their hair

[run33]

Those are the the PP units. You are confused. Let me take a piece of your own quote. " Each Warrant is exercisable to acquire one Common Share at an exercise price of $1.00 per share" Wow... does ANYONE on this board have a clue? I guess there's no point in being here.

[Angelized]

This post has been removed in accordance with Community Policy

[TheInsider]

NOW you've got it right.... congrats.

[TruthAboutHip]

Okay so if you are correct then I have another e-mail from IR which contains false information and states the opposite. The IR department responded to me that it takes 2 warrants plus $1 to purchase one common share with the HIP.WT.A. warrant. Now this information could be completely wrong but this is what the company's IR department told me when I asked the same question. I can only expect

[flyboy27]

On the Canadian warrant site I see the HIP.WTA .at 1 -1 ratio  that is what it says currently.

[TruthAboutHip]

Yeah you are right  it seems to say that on the Canadian Warrant site but that means IR was wrong again ? I have no idea at this point what information I have received from them was actually correct. Is this a lawful way to run a publicly traded company ? I hardly think so.

[run33]

PLEASE tell me you are kidding me. I can't even believe I'm having this discussion. THAT is what IR is telling people???? And yes, that information is completely wrong.  On the other hand, you people should know this stuff. This is very, very basic chit, and if you don't understand it, you shouldn't be here.

[Fattty33]

Truth, do you have a screenshot or copy of the info you received from IR? 

[TruthAboutHip]

Yes I have all of the e-mails I sent and all those I received from IR. There were multiple back and forths on many of the questions and in some cases I never got any real answers. Here is the final answer I received from IR regarding warrants. (HIP.WT.A) This was received on May 25, 2018. "It takes two warrants and $1 to purchase one common share and you can do so for up to 60 months after

[11runner11]

Wow you funny Trip.... can I call you Trip. TRuthabouthIP makes me throw up in my mouth....lmao. Must suck being one of the last few shorts holding the bag. How long did it take you to write that email up. You should have taken more time...you made my day

[TruthAboutHip]

I am not really worried in the about what you think of me, but you should be worried about insinuating that I have done anything fraudulent. I have the e-mail in question and will use it as proof in any litigation that may be necessary.

[11runner11]

Your right Trip... I’m sorry. Please forgive me. I will be acting on the information you have posted. Thank you for hard DD. I know I should do it myself but now I don’t have too. Thank you for caring about me.... Oh Wait.... DO YOUR OWN DD..... DON’T BASE ANYTHING ON INFO FROM HERE WITHOUT CONFIRMING IT YOURSELF...... GL

[OSKARtheRED]

This post has been removed in accordance with Community Policy

[TruthAboutHip]

Thanks for your concerns Oskar. I will now put you on ignore as you seem unable to let anyone else have an experience or opinion unless you officially ordain it. It is my goal to hold HIP and their IR department accountable and that is what I am going to do. I have said nothing on these posts that is not 100% truthful and would never consider doing so. I am also not at all interested in your legal

[OSKARtheRED]

This post has been removed in accordance with Community Policy