OrganiGram Holdings Inc T.OGI

Cannacord Genuity

[Silentbull]

Its a game by brokers like Cannacord Genuity, they covered their short positions by faciltating a private placement. Now the shorting game will start again till the price is pulled under $1 or lower and subsequently another private placement to secure its position at $1.
This is how it works and the retail investor is simply slaughtered. 
If you want to play safe, dont buy and dont sell.You will see brokerage dumoing shares to bring the price down. Its a manipulated system and you will not win against them. You only bet is the market forces beyond control of these brokers

[ScotianMan]

No offence but your comment doesn't make sense. The game is the investment bank shorts the stock before the bought deal is announced; at a price higher than the bought deal pricing. The bought deal is then announced at a discount and stock price drops below the price at which the bought deal is negotiated. The investment bank then covers their short position after the stock price drops below

[ScotianMan]

I bought a few shares on the dip at $1.63 and here is why: Cannacord would have reviewed the financials to be released. If they suck and the price is decimated when they are released, then the purchasers of the bought deal will sue Cannacord and win easily. 

[VENMan]

I don't understand. The bought deal was done for $1.85 and after completed the share price should be able to go back up over $2 per share. Why would anyone in their right mind get in on a deal and buy shares for $1.85 if there was no way to make a profit on the shares? all IMO, GLTA! 

[ScotianMan]

Let's say they borrowed the stocks to short at a cost of $2.10 at a cost of 12% per annum. They sell the stocks at an average price of $2.10 on the open market before the bought deal is announced. They then announce the deal at $1.85 knowing it will lower the price when announced. Boom, the deal is announced and the price is now at $1.58. Let's say they target to start buying back when it

[Cooldude]

I cant follow this math. Where does the 30 million shares they paid 1.85 factor in.

[ScotianMan]

The above example is hypothetical. Typically the investment bank will have clients lined up to buy the units from them at the $1.85 price tag. Before the deal closes. If you notice the deal includes the following provision "...the Company has granted the underwriters a 30-day option to purchase up to an additional 15% of the Units offered in the proposed Offering on the same terms and

[ScotianMan]

I'll be interested to see if the over allotment is exercised. 

[Cooldude]

Ok thanks for clarifying. I guess this is why i am not an investment banker and why they make all the money. I see from last financials they said they miscalculated the demand for value bud and started correcting this near the end of the quarter by offering cheap TPB . I wonder if a revenue increase will be reflected in this quarter due to fixing this oversight?

[ScotianMan]

This is a good sign. https://www.google.ca/amp/s/www.cbc.ca/amp/1.5746615 

[MisterGRP]

I think they jumped on that one a bit late for this quarter, if anything maybe the trailer park buds were out but they were only in NB at that time I think. They have since put out quite a few lower priced items like the shred and the new chocolate bars so hopefully they will increase sales for next quarter if not this one.  best of fortune to all   

[ScotianMan]

"According to unaudited results reported by the agency, sales over 13 weeks between June 29 and Sept. 27 rose to $20.1 million. That returned a $3.3-million profit."  OGI is a big supplier to the Prov of NB for obvious reasons.   

[HopefulJuan]

ACB CFO must have read your post. Brutal. Twice in thee days and it's only Wed. High paid regulators paid off to do nothing. No wonder I smoke.

[marf49]

This post has been removed in accordance with Community Policy

[ScotianMan]

Right - I forgot to mention the added bonus of the warrants. Even more profit. 

[leo101]

does doing this by way of a bought deal skirt around a prospectus where the investment bank would have to come clean regarding shorts and any possible incestuous relationship with the company?

[ScotianMan]

It's a loop hole. They're allowed to do it. They can't do it in the US but in the Canadian Wild West of investment banking - they can. https://www.theglobeandmail.com/business/article-proposal-to-ban-short-selling-ahead-of-deals-to-shake-up-junior/