Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

Aurora Cannabis Inc T.ACB

Alternate Symbol(s):  T.ACB.WS.U | ACB

Aurora Cannabis Inc. is a Canada-based medical cannabis company. The Company's principal business lines are focused on the production, distribution, and sale of cannabis related products in Canada and internationally. The Company’s segments include Canadian Cannabis, European Cannabis and Plant Propagation. The Company's adult-use brand portfolio includes Aurora Drift, San Rafael '71, Daily Special, Whistler, Being and Greybeard, as well as CBD brands, Reliva and KG7. Its medical cannabis brands include MedReleaf, CanniMed, Aurora and Whistler Medical Marijuana Co, as well as international brands, Pedanios, Bidiol and CraftPlant. Its cannabis products are primarily cultivated and manufactured in the facilities in Edmonton, Alberta; Bradford Ontario; Pemberton, British Columbia, and Odense, Denmark. The Company is focused on offering its cannabis products to global medical cannabis market, recreational cannabis market and global hemp-derived cannabidiol (CBD) markets.


TSX:ACB - Post by User

Bullboard Posts
Post by TheWolf22on Jan 24, 2018 4:20pm
433 Views
Post# 27426921

Post from fb on maximum Dillution

Post from fb on maximum Dillution
POST FROM FB: Sorry for the length. Admin's feel free to delete if too much info.
 
My thoughts on dilution because every board I read says it sucks....(do your own DD):
 
As of today, CMED has 24,433,412 shares o/s. On the assumption no cash will be given (i.e. full dilution) and based on the exchange ratio of 3.4-to-1, this would be 83,073,600 shares (rounded). This is the maximum dilution that could occur. 
 
Based on the Jan-15, 2018 news release, Aurora owned 700,600 CMED shares. Since a company is unable to own it's own shares per Corporate Law, after the exchange, those aurora shares would be immediately cancelled and the balance would imeediately become a bump in equity as opposed to an asset account (bonus for those who measure equity and liquidity leverage ratios). 
 
Those CMED shares would exchange into 2,382,040 aurora shares. 
 
So in summary, the total maximum dilution is only (83,073,600 - 2,382,040) = 80,691,560 shares. 
 
Next, currently ACB has total shares (excluding warrants, options and other dilutive derivitives) of 452,733,103.
 
So in total, the maximum ACB shares that will be outstanding after the exchange is 533,424,663. At a market value estimate of say $14.50 (based on today's price average) that would imply a market cap of $7,734,657,614. 
 
Canopy based on average price today of say $35.00 with 191,809,281 shares o/s gives it a market cap of $6,713,324,835.
 
So assuming nothing changes and ACB's price keeps up, we will have surpassed Canopy's market cap by about $1billion. In essence, based on today's prices, we already were #1 and now for sure we are #1. 
 
I am long as hell on ACB and have been since I bought in when it was <$1.00 2.5 years ago.....I am forecasting, with strong international revenues a price point of ACB at $18 which gives it a market cap of about $9.6billion after the next 2 quarters.
 
All imho so do you own DD!!!
Bullboard Posts