RE:RE:RE:RE:RE:coming up on three months LHSGonetopot,
A lot of shares were held in Escrow ...more than 114 million Exchange mandated shares and more than 54 million escrowed shares from the "Offering". Over 140 million shares in total still been held in escrow. Going by memory, actual counts could be higher than what I've stated. I'm trying to be conservative. Remeber, not all shares will come onto the market at the same time. Exchange mandated shares are regulated by National Policy 46-201. "Offering" Escrowed shares get released based on the terms negotiated between parties.
Don't forget they need to raise cash at some point in the near future. Further dilution.
Current market cap of LHS is $284 million, over $300 million when share price spiked earlier this week. Liberty market cap is a third of the value of Aphria (and Aphria value still backfilling). Strength of current share price shows market is willing to pay a premium for LHS.
Not sure why they decided to float 284 million shares, knowing they would have to further dilute. If anybody knows the business reason for floating so many shares, when they could have gone with a lower float, I would be curious to hear your thoughts.
Release of escrowed shares plus dilution may put downward pressure on share price in the short term.
I'm not bashing LHS. They have the potential to do very well assuming they continue to execute and expand based on Aphria metrics. There is a business reason why they structred the deal using a large float, I will leave it to others to specualte why.
I'm curious to hear other opinions on this topic.
M
Gonetopot wrote: Monte I know this is asking alot but can you break that into point form for me "us"??? How many shares were in the offering and how many of the 284 million shares are trading now,ect. thanks maybe someone else has ideas too?