Newstrike Brands Ltd NWKRF

RE:Re: HIP post merger math:

[MNK3240]

MNK3240 wrote: If the deal goes through and at the time of share conversion, the CMED stock price is $26 (for example), the equivalent HIP share price will be as follows:

For 1000 HIP = 33 CMED shares, in other words, 1 HIP share = 0.033 CMED shares
1 CMED share = $26
1 HIP share = $26 x 0.033 = $0.858 (post merger)

So after the deal done, it doesn't matter what is HIP share price, it will all depend on CMED share price, meaning at current price of $26, equivalent HIP share price will be $0.86c. It cannot go beyond this unless CMED share goes down further but if CMED share goes up, so will go equivalent HIP.

This will be the math because after formal merger date, HIP will disappear and all you will have equivalent CMED shares. It's a share for share merger (i.e., the HIP shares will no longer exist).

Now that HIP voted YES, CMED part will be easy as they only require simple majority (>50%). Now pray and hope that CMED share continues to rise.