OTCPK:GBGPF - Post by User
Comment by
MartialArtson Jan 20, 2018 12:23pm
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Post# 27400857
RE:RE:Fact: Aurora has 170M shares & $200M CMED's attention
RE:RE:Fact: Aurora has 170M shares & $200M CMED's attention
I'm not sure why you are so angry? Perhaps you are an Aurora shareholder who wishes the hostile takeover was a success? Please come to terms with your loss on that. It's not happening. Look at the facts and do some research.
Management has said NO and Brent Zettl alone controls 9.46% of the votes. It's impossible for Aurora to do this in a hostile way and that's why there are at the table this weekend. They either provide a merger plan that makes sense to all or are shown the door. If this ACB-CMED merger fails, you can be assured the bears will be out in force on all of these. If the ACB-CMED friendly merger succeed, we'll see a bull rally that will benefit all. Since I can't short yet, I'm hoping for a bull rally that will take these to the next level.
One important red flag here to failed mergere talks is the dubious claim from Aurora they had 38% of the votes locked up. The math indicates this is false. According to insider reports at SEDI, all majority of the shareholders control 10.9M of the votes or 44.6%. Since Zettl and the NO camp control over 10% of the votes of large shareholders, the max lockup would be less than 34% so the 38% number appears to be as pure fabrication and market manipulation in attempt to swag the vote and mislead investors.
Regulators asked Aurora for more information and the response from Aurora, at least in public, has been horrible. I hope regulators both at the provincial levels and via IIROC continue to question the sequence of events here on this failed hostile take over bid but all of that can be dealt with if the merger is agreeable for all.
If there is no merger, I would not want to hold Aurora, it will become toxic with all these unanswered questions and regulator oversight. After all ACB has been the #1 market mover for weeks. Regulators can't be caught sleeping at the wheel on this. CMED will do fine except for the bear attack on the sector because everyone wants to merge with Cannimed because it's one of the only true value plays in this sector.
It's also important to keep in mind that Cannimed's CEO Brent Zettl is the #2 largest shareholder and the CEO of the company that said NO to the hostile take over. #1 shareholder is a fund manager that is accountable to fund holders. I can assure you that fund holders will hold the fund manager responsible for any negligent behavior that creates a loss for holders. There are a lot of eyes on this now and a lot of people ready to ask questions and make phone calls.