GB Group Ord Shs GBGPF

GB Group plc is a United Kingdom-based company, which provides identity data intelligence products and services helping organizations recognize and verify all elements of an individual's identity at key interactions in their business processes. The Company's segments include location, identity and fraud. The location segment includes address lookup, verification and capture; e-mail validation; phone verification, and data maintenance services. The identity segment includes document verification, data verification and identity investigation services. Its identity verification solutions can be configured to carry out a wide range of functions, including know your customer checks, anti-money laundering checks, age verification checks and liveness detection. The fraud segment includes transaction fraud monitoring, combating origination fraud and in-life fraud investigation services. It provides artificial intelligence powered screening for automatic onboarding or referral of customers.

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GB Group Ord Shs > Why is CMED only $26.45 and not $28.90 to match ACB?

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Comment by Sledd66on Feb 02, 2018 11:41pm

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Post# 27495295

RE:Why is CMED only $26.45 and not $28.90 to match ACB?

StayInCash wrote:
I've followed a lot of mergers in the past. When ratios are announced, usually the stock being acquired trades at the same ratio price of higher than the stock buying out.

Higher if there is speculation that someone else will make a higher bid. I looked at the Latest Offer and with any higher offer from someone else, Aurora has the right of first refusal. So obviously there is an expectation this might happen.

The press has reported the deal is worth $1.1B but I calculate $645M as of today which is incredibly cheap consiering 72000 litres of CanniMed oil is $1.7B in revenues per year!.
I'm just trying to fact check everything before getting too excited!

What I I don't understand is why CMED is trading at the lower price than the ratio?

ACB closed at $8.50 so $8.50 * 3.4 = $28.90 Why is CMED just $26.45? Why the $2.45 discount when really, there should be a premium?

I'm waiting for the markets to stop the panic. I have full confidence markets will recover on the short term but I don't want to risk so I'm in cash ready to get on WEED, APH or ACB.

All these cannabis stocks at the top companies and the ones in best position to continue to dominate the market. All have their pluses and minuses so I might equally invest in the three.

But it seems I should be buying CMED instead of ACB to get more bang for the buck and although ACB was overvalued at over $6B it certainly is ot at $3B!