Bedrocan Cannabis Corp. V.BED

Arbitrage Opportunities

[TruDat]

Possible opportunities to profit arbitrage in this deal.  

TWD is currently at $1.85 which gives BED a value of $.86 at the ratio of .46f per the deal.

over 10% difference in share price at the moment.

[Roxy27]

Very good observation. Picked up more at 77 cents. Can anyone explain this or is it just market inefficiences on a small cap less liquid name? I don't see there being a regulatory issue with the merger. BED is undervalued at 77 cents IMHO TWEED is trading up on the news and is the confirmed market leader. seems like free money Interested in knowing what would be the cause Good luck.

[TruDat]

The market is telling us a few things... 1) Tweed got a great deal buying us at that stock ratio (as shown by the 9% increase in TWD) 2) The market beleives there is a good chance that the deal doesn't go through for some reason (as shown by the spread between prices). I personally think the deal is as good as done.  Not sure the exact holdings but I bet MGMT and the board have enough

[CommonCentsforDollars]

$2.07's getting eaten up right now on the tweed side....

[CommonCentsforDollars]

Tweed @ $2.15 now,.. will see how it moves after the lunch hour lull,.. 12:30 does more momo get in?

[bullishbear369]

Wouldn't it be cheaper for investors to buy BED than TWD? The BED shares will turn into TWD shares, but you will be getting them at a discount....

[CasusFortuitus]

But you will only get .465 TWD shares for every 1 BED share, right?

[bullishbear369]

Let's say TWD = $2 $2 / .465 = 4.3 That means BED should be at $0.93 for it to be a exact fair value of TWD at $2 Since TWD is above $2, that means you're scoring a deal on TWD shares by buying BED shares @ 95c or under!

[cinema4d]

as long as twd doesn't fall back under 2 after all this dilution...correct? C

[bullishbear369]

Correct. But people are buying TWD over $2, when they should really be buying BED for the discount - you could potentially break even with more shares if it goes below $2. I don't see why anyone would buy TWD at $2+ when BED gives you a discount on their shares.

[cinema4d]

100% Agreed!..but as we know invstors are a funny bunch:)....

[cinema4d]

looking at the volume between the 2 companies I would have to say that is what investors are doing C