RE:Aurora Cannabis and CanniMed Therapeutics The variable is the SP of ACB at the time of the conversion.
If it dips lower than (*what you paid for the CMED share)/3.4), you would be losing money.
I think :)
For example:
- You sell your ACB and take whatever profit from the price you paid. That is money in the bank. If you sell them at a loss, you are already sunk IMO.
- You buy 10 shares of CMED for $419.00
- In the meantime, between now and the date of conversion, SCB dips to $10, a very real possibility.
- At conversion, you get 3.4x10 or 34 shares of ACB. So, if they were worth $10, you would be getting $340 in vale, for the $419.00 you paid.
- As of this moment, you would have to hope that ACB Was worth at least (419/34) or $12.32 to break even.
HTH
CB