EmotionMerry Christmas everybody,
Reading posts both here and some at the ACB board and it seems as though some people are having very emotional reactions. I can understand CEO Zettl losing his cool to a degree, but as an investor, I don't get it. Perhaps some of those posting emotion-based responses have a deeper relationship with the company. Anyway, a few points made by some that seem to oppose/hate Aurora::
1. Don't want to be a part of ACB because they are bullies and dont work well with others.
Fact check: check the number of deals they have made with other companies, be they acquisitions, partial ownership investments, or working agreements. Companies would include Namaste, Micron Waste Radient Technologies, Pedianios (in Europe), Australian company whose name escapes me possibly Auscann, Larssen Greenhouses. All partners spoke glowingly of Aurora management.
2. Medical is where it's at compared to recreational. Fact check: look at every estimate of rec market vs medical.Both are great; rec will dwarf it. Look at the increase in medical customers signed up by Aurora in comparison to CMed over the last six months and consider the production capacity of Aurora in comparison to CMed. Cmed will benefit Aurora; Aurora will benefit Cmed.
3. Newstrike will be a great acquisition. Fact check: No it won't; particularly not at the cost indicated. Research Newstrike and while doing that, do not just buy into the "Tragically Hip" angle without realizing that, for one, celebrity endorsements have been banned at this stage,and it is highly unlikely that they will ever be allowed, at least in our lifetimes.
4. Point to consider: do you think that financial management companies are generally smart money whose overseers are paid huge sums to do what is best for their investors (including themselves) and to grow their investments? If so, then you should consider why the Saskatchewan based financial companies now locked up approached Aurora with this business suggestion.
5. Do you believe that both cbd oils and production costs are an important part of the cannabis equation? Then you should consider Aurora's partnership with Radient as opposed with the extraction method incorporated by CMed.
6. Do you believe that if there is strife on an executive board over a board's direction and performance, that this is something a shareholder should examine? Then look at the happenings on the boards in question.
7. Would you think it was rash and unwise for a CEO to make comments that affect not only his target but also reflect on his own company, for example mentioning "overvalued shares" in a cannabis company, a sector whose valuation is based primarily on expectations?
8. When prudent companies like Aphria and Namaste announce that they are distancing themselves from US operations in order to abide by Canadian regulations and US federal law, would you question the timing of your company, whose CEO just stated in an interview that the focus was now going to be all about the rec market, announcing initial introductory steps in looking at the Michigan market? Keeping in mind that, a this stage, those steps equate to, in essence, a few phone calls and faxes with absolutely no traction pending changes to federal law?
I hope every shareholder of every company in the cannabis sector makes great profits; I love that regular people are making money and not the usual profiteers. I hope the merger takes place because I think it will be of immense benefit, short and long term, for shareholders of both companies.Thus far, the only objective articles I have read by authors with no shares in either company believe that a successful takeover would be, by far, the best thing to happen and would launch the new, combined company into the no.2 spot in the industry. The most recent article can be found at technical420.
I hope the combination takes place and believe that, if it does, there will be no more of the bizarre, us vs them posting going on, which makes no sense whatsoever. Because everybody would see new highs in their investment profits.THe only people who would lose anything would be Newstrike shareholders who would have been inches away from winning the lottery (at CMed shareholders' expense), and the remaining executives at Cannimed, trying everything under the sun not to lose their positions.
Merry Christmas everyone!