RE:Merger affect on shares?This is what my opinion.
If there is a merger between ACB and CMED without HIP, HIP's price will be run amok for a while until a big correction kicks in. I honestly don't think that HIP is worth more than $1/share given their assets.
If HIP is included in the merger, HIP 's price will be brought down to that $0.89 mark or whatever they decide to offer. I doubt they will give HIP much more than that. ACB and CMED has CBVs working for them to get a good price. Again, I don't think it should be more than $1 including the premium.
This is where I think is interesting. I think CMED has the smarter people among the three. CMED offered HIP a fair market price for the net assets plus a premium. However, ACB low balled CMED offering only $24 per share. If you look at CMED's financial statements, their net assets is about 1/3 of ABC's, but ACB market cap is approx. $6bn versus CMED's market cap of approx. $1bn. Not to mention CMED has just as much inventory as ACB. No wonder why CMED was pissed off.
I hope I be provided a bit of an answer. I know there will be many they will disagree with me but I'm just trying to apply some of my profession to good use somehow. Anyway, my intention was never to long HIP. I wanted to catch the volitility. Making $20k in 2 days is not bad.
MichaelKuss wrote: Very curious what would the effect be on the price of HIP assuming the Acb/CanniMed merger goes through? What would the affect be if the merger DOES NOT go through? Thanks