RE:RE:Acb has now 220 million in cash! I personally don't think it is going to be a complete buyout but ACB is going to greatly increase their stake in RTI from their current ~10% position.
Here's where ACB is currently at if they still hold all of their shares. Feel free to correct my math if I'm wrong here.
17,245,221 shares received at $0.14 = $2,414,330
Value Today at $0.68 = $11,726,750
Return: +385%
17,245,221 warrants @ $0.33 = $5,690,922
Value Today at $0.68 = $11,726,750
Return: +106%
With all Warrants redeemed, they've paid $8,105,252 and have turned that into $23,453,500 for net gain of $15mil. My thinking at best case scenario is that ACB increases their position to near 50%. With RTI market cap currently at around $110 mil, 50% ownership would require about $54mil. They already have $15 profit from their initial $2mil investment, so call it $40mil more to go all in with these guys. With the $69mil they just raised today, this is VERY much within the realm of possibility. If the due diligince was as good as both parties have made us believe, there is a ton of $$$ at play here, just in the MMJ sector alone.
I for one believe this is going to be a bigger agreement than many are expecting. The profitability from oil is going be so lucrative that speed to market is Aurora's play with RTI here.
I'd love to get some feedback on what others think, I am surely missing some of the details / variables.
Under the terms of the MOU, Aurora will fund the collaboration through the Debenture. The Debenture will have a term of 2 years, bear interest at 10% per annum and will be convertible into units (each, a "Unit") of Radient at a conversion price of $0.14 per Unit. Each Unit will be comprised of one common share of Radient and one share warrant, exercisable within 24 months, for one common share of Radient at an exercise price of $0.33 per warrant. The issuance of the Debenture is subject to all necessary regulatory approvals, including the approval of the TSX Venture Exchange.
Radient has been advised by Aurora that prior to the conversion of the convertible debenture Aurora held 2,777,800 common shares and 2,777,800 purchase warrants. Radient has been further advised by Aurora that after giving effect to the conversion, Aurora holds 17,245,221 common shares and 17,245,221 share purchase warrants of Radient representing approximately 9.6% of the issued and outstanding common shares, and 17.5% of the issued and outstanding common shares on a partially diluted basis.