ACB CMED Deal Discussion- This is an All-Share Proposal. As I understand it this means that holders of CMED stock (on a particular future date that is announced/agreed upon) will receive $24 dollars in Aurora shares for each CMED share. How many ACB shares they receive for each CMED share will depend on the terms of the agreement (exactly what ACB share price they decide to use).
- They mention the number of ACB shares to be received based on the 20 day weighted average and based on today's closing price. I view these as examples, otherwise why mention both. Please correct me if I'm wrong but only if you are certain. My interpretation is that we will get an announcement that will firm up exactly what the terms will be.
- In regard to the shares CMED shareholders are to receive. They have to come from somewhere. They aren't taking my shares. Terry Booth isn't being charitable and donating his shares. They have to come from somewhere. Please attempt to see this as an accretive acquisition and not just dilution.
- As I understand it this will add ~85 million shares. (based on today's share price)
- They said based on today's closing share price, CMED shareholders will hold ~16% of issued and outstanding shares. When I did the math (based on CMED outstanding share data) I came to 17.5%. I realize this is because it is only based on issued shares.
- Please understand that if ACB acquires CMED it will have ~485 million issued shares. This number is over 500 million including everything outstanding. If you don't like this, there are other stocks. I will probably ignore you if you complain about dilution.
- Feel free to share your constructive thoughts about the proposal. If I were a CMED shareholder I would jump at this opportunity. Aurora obviously has a superior management team. I feel they will be able to do a lot with CMED.