Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

MEDRELEAF CORP T.LEAF

"MedReleaf Corp is engaged in the production and sale of cannabis for medical purposes as regulated by the ACMPR, pursuant to its Licences and, in particular, its Markham Commercial Licence."


TSX:LEAF - Post by User

Comment by Analystguyon Jul 27, 2018 7:34pm
287 Views
Post# 28379815

RE:Clearly manipulation

RE:Clearly manipulationYou are right there is manipulation and collusion. On May 11th LEAF closed at 24.90 and ACB closed at 8.07. The closing ratio (24.90/8.07) = 3.086. This closing ratio is 15% less than the deal ratio of 3..575.

What happened was that ACB lowered its share price by 15% such that it offset the15% shortfall from the May 11th price ratio.

Mathematically:

Let x = the required ACB price such that the percentage change in ACB price equals the 15% price relative shortfall as it existed at the time the deal was announced (3.575/3.086)-1.

(8.07 - x)/8.07 = .15

Solving for x: x = 6.85

Given x (ACB price upon closing) = 6.85, then LEAF price upon closing is 3.575*6.85 = 24.52.

Actual close on Jul 26: ACB = 6.85 and LEAF= 24.64.

I can go into the statistics before and after the vote (boring) but know that they too show a significantly different trade pattern.

The question I have is who profited from this transaction? Certainly the insiders, and those who had wind of what the final numbers would be (brokerages). All in all, this to me smells to the point that I am contemplating a class action.
<< Previous
Bullboard Posts
Next >>