Post by
Ghosttrader11 on Sep 11, 2018 6:35am
My opinion on the whole deal
I just want to share my opinion on this after the announcement yesterday.
Aurora is about to aqcuire ICC Labs at a valuation of 290 Million Canadian $.
Aurora is valued at approx. 8 Mrd. Canadian $ at the moment.
Aurora currently has 530.000kg annual production capacity.
ICC labs currently has 450.000kg annual production capacity.
With this deal Aurora is able to
- nearly double their production
- gain market entry to the whole south american continent
- gain a state of the art laboratory in the free trade zone in Uruguay
- gain the permission to produce in Columbia and Uruguay
- produce CBD at a much higher rate as the Canadian competitors
- ....
This list goes on and on.
To nearly double their production, they have to pay 1/27 of their current valuation. This is ridiculous.
We don't know whats going on behind the scenes. I am really wondering why the management accepted such a deal. Maybe there are some things we dont know? There has to be something, otherwise i cant imagine why they accepted this deal.
As a shareholder, the company belongs to us. I think there is a possibility that a third party steps in and makes a higher bid for our shares (for example Aphria or Canopy). Especially the sentence "The Arrangement Agreement provides for, among other things, the ICC Board being able to consider a superior proposal in certain circumstances and a right in favour of Aurora to match any superior proposal" lets me hope for that.
I personally will keep my shares and vote this whole deal with NO and I encourage every shareholder of ICC Labs to do the same. I think that people, who invested in ICC, made their DD and are aware of the potential, because ICC isnt one of the overhyped companys that everyone knows about. Therefore i hope and think that many people calculated the numbers and have the same opinion and i dont think it's unlikely that those people also vote with no.