OTCPK:GBGPF - Post by User
Comment by
MartialArtson Feb 15, 2018 11:33pm
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Post# 27569723
RE:RE:RE:RE:RE:RE:Why CMED is still #1
RE:RE:RE:RE:RE:RE:Why CMED is still #1
Frankly, I can't see how anyone can be bullish on HIP short term? They were dismissed by ACB, the #1 growth by acquisition player on the cannabis markets.
CMED clearly plans to sell over 22M of newly issued HIP shares. That significant share dilution on HIP and a lot of new shares being sold on the market creating significant downward pressure for HIP in the foreseable future.
From the latest CMED MD&A on SEDAR:
" [CMED] has notified Newstrike that it intends to convert its convertible debenture receivable into 10,958,904 shares of Newstrike , exercise the warrants to purchase an additional 10,958,904 shares of Newstrike and to liquidate its resulting position in the Newstrike shares in an orderly manner . Proceeds on liquidation will be subject to market conditions at the time the Newstrike shares are offered for sale. "
The proceeds alone will be twice what the break up fee was. Everything that is positive for CMED is negative for HIP.