on May 25, 2018.
CBi
2 is a merchant bank that specializes in cannabis funding. A rights offering may be unfamiliar territory for many retail investors, so let’s look at the details.
Details of the offering: Rights are offers that allow stockholders to buy shares at a set price for a set time period, usually at a discount to the current trading price. The number of shares an investor can purchase is usually proportionate to the amount of stock they already own.
As of May 25
th, each holder of CBi
2 common shares will receive one transferable right for every common share they hold. Transferable rights can be sold on the open market. Every four rights in this offering will entitle the holder to purchase one unit at a price of $0.06 until the rights expire at 4 pm MT on June 22, 2018. Each unit will consist of one common share and one-half of one common share purchase warrant. Each warrant will entitle the holder to purchase one common share at a price of 10 cents until June 22, 2023. CBi
2 doesn’t need to receive a minimum amount of subscriptions from shareholders to make this rights offering happen.
Until June 22
nd, shareholders could trade their rights on the market as they would trade regular shares. These rights have a value of their own, compensating shareholders for any future dilution of the shares’ current value.
An undervalued opportunity image: https://www.stockhouse.com/media/topstories/Misc/CBi2.jpg
A five-year lookout on this offer means that this is a solid long-term investment. In the immediate picture, it is a robust deal, with a market cap at $7.16 million and a current list price at $0.075 a share. If this stock performs as expected, it would be like having a winning lottery ticket. Considering how the cannabis market is projected to surge in the coming years, CBi
2 stock is like a sleeping giant that is about to waken.
Based out of Calgary, Alberta, the Company intends to develop and manage a diversified portfolio of predominantly early-stage cannabis investment opportunities, including start-up operations and land development corporations. This includes investment opportunities in both the recreational and medical cannabis industries, as well as businesses that offer ancillary supportive products and services.
The Company is already expanding its global reach. In April 2018, CBi
2signed an alliance with Australian investment firm
MMJ PhytoTech Limited (ASX: MMJ) that does similar work for cannabis clients “down under”. The two Companies will share information and collaborate on co-investment opportunities build a diversified global cannabis investment portfolio.
CBi
2 Chairman, CEO and President Sonny Mottahed said of the agreement:
“The Alliance provides each of us with a broader network from which to access mutually beneficial investment opportunities in both the Northern and Southern hemispheres.” CBi
2 offers a bargain stock in a hot sector.