GREY:FFLWF - Post by User
Comment by
Dontbesogreedyon Dec 01, 2016 5:19pm
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Post# 25543129
RE:RE:Mettrum recent CGC price at 12.10!!!!
RE:RE:Mettrum recent CGC price at 12.10!!!!There is no money involved
* Mettrum shareholders to receive 0.7132 common shares of canopy growth for each common share of Mettrum
The price of CGC will probably drop a little (temporarely) and the price of MT will rise but will be discounted for the risk that the deal may not go trough.
as we get closer and closer the the merger, Mt price and CGC price will get closer to each other.
another to see this:
MT = $7.60
CGC = $11.35
at the moment 11.35X0.7132= 8.09. if you buy MT at said price now, you have a risk discount of 0.49$
on the other side you could argue that the market beileive the correct price for CGC should be 7.60/0.7132 = 10.66$
Both views are valid and as time goes by MT will tend toward the price of CGC unless the deal if off for whatever reason.
Should you sell all your CGC to buy discounted MT? well, do you like risk? Both MT AND CGC will vary in price and no one seems to be able to predict a thing, but long term all cannabis stocks should prove good potentials.