RE:RE:RE:RE:HEXO + Tilray Good NewsInteresting perspective Q !
GB
quinlash wrote: The CEO of Tilray already noted that he has no desire to see any of the Canadian Cannabis Producers fail so therefore it is unrealistic to expect he will present HEXO Corp with a "Take it or leave it option"
The CEO of Tilray also noted that for every DOLLAR HEXO corp moves up that Tilray will see a $200 Million gain on the value of the debentures they are picking up from HEXO Corp.
Here is the reality of the markets. If an offer is made to take over a company then the SP snaps to the value of the offer. Therefore, if Tilray makes an offer of $1 then the SP will snap to a minimum of $1 as no one will want to sell shares for less. If Tilray makes an offer of $2 then the Shareprice snaps to $2 and the value of Tilrays postion in HEXO increased by over 200 Million Dollars. In fact, Tilray can offer as much as they want and the SP will snap to that value, for every dollar more Tilray offers they will automatically see a return of $200 Million per DOLLAR offered.
Considering most of the HEXO Insiders likely have a running average of over $2 per share and that the Redecan deal was valued at $7.53 per share it is reasonable to expect that Tilray will make an offer over $2 and closer to the $7.53 number in order to win approval of the deal in a vote. It will make little to no difference to Tilray as... for every dollar increase Tilray can pocket $200 Million
There would be no losers in a deal structured in that fashion... well, maybe those who sell early at a loss or anyone short but who the hell cares about the shorts ?
ummm... you know what... maybe I should have a career in making short babies cry :P
Best Regards
Q