RE:Boiler room Blue and his BSWowzas. Just came across this. It's amazing what you can find in the morass.
Buckshot26 wrote: I seriously did not want to reply to this bs but now I have emails coming in saying things like is it true, we only got $7 from Constellation Brands etc.
This is easily the most moronic thing I have ever read. The market repsonded to this deal by adding almost $1billion to our mkt cap, and our stock has been the most active on the TSX indicating as Beacon Securities rightly pointed out last night that Canopy is now an Institutional gateway stock. Boiler room blue would have you believe retail investors are responsible for this move-LOL. There have been countless articles on the deal and every single one them has praised it with phrases like "GAME CHANGER!" etc.
But here we have poor boiler room blue, who I assume is paid by Aphria to promote their stock. Look at his posting history. He showed up on Nov 15th last year, the eve of the blow off top, and his very first post ever was praising APH and bashing WEED. He has gone on for the last year utilizing his passive aggressive personality to play the wolf in sheeps clothing. Acting like he is here to help while spewing a constant stream of bs about Canopy yet in the face of the disgraceful actions of APH's management turning a blind eye. A blind eye to when APH raped cdn tax payers and VET's, a blind eye to apparent back dating stock option into a quiet period, federally breaking American laws ETC ETC ETC.
The spread between the share price of APH and WEED has widened from just under $2 to almost $9, so I suspect that whomever is paying boiler room blue is not happy and that is likley the reason we got this hot turd of a post from him. Desperate times call for desperate measures I assume.
But let's pretend boiler room blue is on the level for a moment and look at his latest creation.
First black scholes is the gold standard for option pricing, no doubt about that. It can be used for some warrants and there is even an add on equation to account for dilution that happens when warrants are exercised vs options which are written against exisitng stock.
So yes, some warrants can be priced accurately using black-scholes, no doubt about that, BUT NOT THESE. Options command the amount time premium they do largely because there is a secondary mkt for them and they are free to be exercised at any time. These warrants vest. Meaning they are locked up and cannot be sold or executed for 10 months. In ten months time 50% or these warrants can be exercised, not sold, exercised. The next 50% can't be exercised for 16months. To value these warrants with these restrictions as call option is so beyond misleading that it's is pathetic.
Next boiler room blue takes his inflated warrant value and charges it to Canopy. He tells people that we are only getting $7 something for our shares. This is pure unadultered BS at it's worst. We have sold CB 12+million shares at 12.97 for $245m CAD and there are no finders fees or charges against this money. They get the shares, we get the cash PERIOD. If and when the warrants vest, CB will be able to exercise the remainder for another 12+million shares at $12.97 for $245million PERIOD.
You can't back out the value of the warrants and charge it to WEED. Sure the warrants have value, not the the value boiler room blue has misrepresented, but they have value. If you wanted to follow boiler room blue down his rabbit hole I suppose you could say the warrants are worth $3.50. You could add that value to to the what we are supposed to get when the warrants are exercised and call it a missed opportunity. Ie. we sold CB the right to buy 12+million shs at $12.97 for $12.97 but really those shares warrants should be worth $3, so we should have gotten $15.97, not $12.97. But this is the real world and we're in the business of selling cannabis not shares.
Point is, even if you want to believe this foolish blow hard that money was left on the table, to account for it in the manner he is beyond moronic. The deal was done at a premium PERIOD. CB in essence bought 20% of our company at $12.97. Every penny of that deal goes into our coffers and there is no discount or charge to be had.
Deferring the second 10% of the purchase was imo definitely our doing not CB's. Keeping CB at or just below 10% is extremely important from a take over point of view. If we had given CB 20% out of the gate no ones else could buy us out without CB's consent. We now have put a gun to all other possible suitors heads that they have until August 1, 2018 to make their move. 90% of shares are needed to make a takeover deal "mandatory". Meaning that extra 5% that CB can exercise next August puts them in the driver seat for any possible deals. Understanding this component is extremely important and why this deal has been so widely applauded by every single source i have read.
CB has fired the first shot, now we wait and see how it all unfolds. Do we get a bidding war. Does CB thwart any possible bidding war and make an offer for the company prior to August of next year... Bottom line we are in play.
Lastly and just as importantly, CB is bringing a lot more than cash to this deal. This is not some bought deal with a tier 2 brokerage. They are bring years of knowledge and experince to the table in terms of branding and mining consumer preference data to the table. No one in their right mind would ever choose the the background of some tiny vitimin salesman against a $50billion conglomerate. Seriously who in their right mind would??? Well maybe if you were paid to promote a company online you might, but I'm speaking to sane investors here.
Anyways that is all I'm going to say about this BS.
Believe what you want but the mkt has spoken in spades and at the end of the day al that really counts is what the mkt thinks RIGHT? Spread between APH and WEED has expanded from $2 to almost $9. WEED has absolutely demolished APH and no one can say differently THAT IS FACT. Sorry boiler room blue, your last bit of credibilty just went up in smoke, hope you at least caught a buzz to help easy the pain.