GB Group Ord Shs GBGPF

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Should I hold or sell Cannimed

[StayInCash]

Elections are done for each of your accounts and applies to all your shares for that account. If you don't do anything, you get all shares.  Most small investors who don't real won't do anything or if they are bullish on ACB will simply do nothing to get the full default 3.4 ACB shares per CMED.

Everyone votes individually. Whether to merge or not is decided on the  66 1/3% majority.  That's a group decision but with major shareholders on board and the CEO on board I can't imagine the vote being no. 

With the status-quo of "too conservative, non-recreational" Brett Zettl as the fall back, unless APH or WEED steps in, ACB's revised offer is obviously the best choice moving forward.

The $5.70 is NOT the cap.  The $140M is the cash cap.  Divided by all the shares electing the optional cash.  $5.70 is the max assuming 100% of the shares vote for the cash option which is simply not realitic.  That would mean that every single shareholder is fully clear on the deal and has read all the documentation and it's clear that's not the case.  People without experience will just "go with the flow" if they are comfortable. If not, would sell now to lock in cash without all this complication and uncertainty.  CASH now is the only sure thing and that means selling on the market which is exaclty what CMED investors have been doing as proved by the undervalued CMED to ACB shares today.

So say 50% of the people are confused, they don't select the cash option since they are fixated on the $5.70 number, the table I provided is accurate.

In that case, cash electioned holders get  $11.40 cash plus 2.5 ACB shares. If the conversion date was Friday,  They would get $11.40 + 2.5*8.50= $32.65 a premium over CMED close of $26.45 But keeping in mind that the ACB shares are highly volatile having lost almost 50% of their value in just two weeks!

Let's assuming everyone is confused, because the deal is written in a very confusing way,  my CMED shares are part of 3.256M shares that have selected the cash only elective.  That's 3.256/24.5M so 13.2% or less of shareholdes have elected the cash only.  I get $43 CASH with no ACB shares.

Read the press releases and the information available on the investor relations site and on SEDAR.  Call IR at CMED to confirm and if you hear something different, please let me know.

I'm happy to be wrong today because I'll stand corrected.  I just don't want to be wrong if I buy and get it wrong at time of conversion!