RE:RE:CGC being the acquirer...Lomers wrote: Leafs420 wrote: Im still relatively new to investing, having only started in January of this year. I know normally the acquired company rises in value, while the acquiring company falls in value. Do we expect to see this with CGC? I only ask as they purchased MT with common shares and not debt. I realize that there is dilution, but isnt that offset by the assets and value added to CGC?
Also, it must help that MT had very few outstanding shares compared to all the other LPs. Regardless, gonna be a fun day tomorrow. Just want to get a better picture of what type of movements to expect from CGC in this scenario if anyone has experience
Thanks!
It can go either way...You are correct that the acquiring company usually loses some value. However in a young growing industry like this alot of investors might take it as a sign of strength that they can pull off a deal like this. We might just see both CGC an MT go up... I've seen it before.
Yea, I feel like we're gonna see CGC in the green today. This sector hasnt exactly been orthodox, and I feel like CGC acquiring one of the COMA LP's, and now gaining even a greater share of the market... its growth potential believe it or not, has gone even higher.