GB Group Ord Shs GBGPF

RE:RE:RE:RE:RE:RE:No bidding wars for CMED nonesense

[longonMJ]

MartialArts wrote: I don't see any advantage of tendering my shares nows because something tells me there will be a "Superior Offer" by someone to solidy this deal to ensure it's doesn't go through at these depressed market prices.  If the stock prices reaches >$43, I will reconsider.

This is where it gets interesting.  Management prefers to do the share deal since it keeps cash in their pockets for other acquisitions.  So it's unlikely they will buy shares over the market but the flip side is they can't afford to have the share prices fall below $43 since having the share price above $43 makes it more favorable for shareholders to do the all-share deal.

Isn't Aphria facing this exact same scenario with their attempted takeover of NUU since the share price of APH has also cratered, similar to all of the other MJ stocks?

My take on this is that Aurora has about 3 weeks to get their share price past the $12.65 implied price.  If this doesn't happen, it means that Aurora will have to put up the $140M if they want to go ahead with this takeover and also hopefully not have somebody else come to scoop from underneath them.

As a result, it would definitely be in their best interest to get the share price moving back up as soon as possible.  Of course, it would appear there are some other players here who would like to keep ACB's hare price down for their own business interests.