RE:RE:RE:Market TOSSES CMED $ 725 Million Lawsuit Aside !!! your math does not make a lot of sense I am afraid.
a. CMED = 24.4 M shares; HIP = 389.53 M shares. will lead to a massive dilution of total number of shares of the nascent company.
b. HIP shareholders are better off selling their shares at 1.59 to buy 0.06 shares of CMED for 1 sold shares of HIP as of today's close as opposed to be getting 0.03 shares of CMED for 1 share of HIP (based on the anticipated deal of 33 CMED per 1000 HIP)
Eigen337 wrote: To mikerosoft667:
"Help me understand why I would reject the offer. HIP isn't going to get me to $24 and without ACB offer CMED not worth $24. At least that's where my head is stuck in terms of trying to understand the resistance from some shareholders.
Would appreciate your considered thoughts on that ? Do you believe CMED can go higher with HIP and on it's own ?"
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For starters:
Assume ACB aquiring CMED FAILS !
We will FORMALLY know on 1/23/2018 !!!
For CMED acquiring HIP, we get EXCHANGE ratio as follows:
33 CMED shares per 1000 HIP shares !!!
From today:
CMED(CANNIMED THERAPEUTICS INC) | | Real-time |
| $24.58 | Bid: $24.57 | Ask: | $24.60 |
 0.55 | Bid Lots: 10 | Ask Lots: | 4 |
| | High: $24.90 | Low: | $23.99 |
| Last trade: | Vol: 267,267 | Tick: | - |
| 15:59 ET |
HIP(NEWSTRIKE RESOURCES LTD) | | Real-time |
| $1.59 | Bid: $1.59 | Ask: | $1.60 |
 -0.09 | Bid Lots: 187 | Ask Lots: | 901 |
| | High: $1.83 | Low: | $1.46 |
| Last trade: | Vol: 15,928,680 | Tick: | - |
| 15:59 ET |
Assume CLOSING price for comparision:
From CMED angle: 33 * 24.58 = $ 811.14
From HIP angle: 1000 * 1.59 = $ 1,590.00
We will make the usual assumptions about markets that are too long and complicated to describe here !!!
We ASSUME that markets are EFFICIENT (they are NOT!!!) !!!
So if everything was the SAME, we would EXPECT that the FUTURE price POST ACQUISITION of the CMED/HIP union would be:
>>>>> $ 811.14
<<<<< $ 1,590.00
or in PER NEW CMED share terms:
>>>>> $ 24.58
<<<<< $ 48.18
After the MERGED acquisition, the share price of NEW CMED (merged with HIP) would TRADE between $ 24.58 and $ 48.18 !!!
CMED will GO HIGHER with HIP since HIP brings to the table PREMIUM RECREATIONAL MJ pricing on TOP of HIGH-QUALITY MJ production for BOTH medical and recreational !!!
This is my opinion only.
Eigen337