RE:RE:Morningstar Quant Rept. Values LEAF at $31.60With regards to why they want to sell. The answer is too much money made.
MedReleaf was structured differently then most if not all the other LP deals. What I mean is they did not go the RTO route but instead built the company on the backs of 6 key/founding investors and then did an IPO (not RTO). Going this route left these key/founding investors the majortity of the company to this day. These investors have shown from day 1 that they are interested in cashing out as they sold into the intitial IPO (see blurb at bottom of this post) and I suspect most of them are looking at returns of near 50+ times their initial investment. If you could turn a couple of million into $200+m or whatever I suspect you would be happy to take your money and run also, I know I would :)
If you look at sedi you can see these the key/founding investors have been liquidators for quite some time:
Stephen Arbib began with 10,744,745shs and sold 828,949 leaving him with 9,915,756 shares worth about $228m today. Google his name and I can't find a thing he has done prior to Medreleaf so I suspect this is like winning the powerball for him/
Baronford Heights Ltd began with 9,012,844shs and have sold 246,637 leaving them with 8,766,207 worth $201,622,000 Baronford is a holding company owned by Thoedore Wine who best I can tell is a VP with Greenpark which is a homebuilder. I'd be shocked if he was worth $10m before Medreleaf but have no info on him so that is pure speculation on my part. So again another powerball winner.
Neil Closner began with "only" 2,891,708 shs, has sold 79,131 leaving him with 2,812,577shs worth $64,689,000. Neil was with Mt Sinai Hospital prior in the role of Vice President of Business Development which I'm guessing pays about ~$200k so he is yet another upper middle class person who hit the Lotto Max.
Ray Leech began with 12,509,479 shs, has sold 1,818,263 leaving him with 10,691,216 worth $245m. I believe Ray is a lawyer in London On, probably makes a decent living but doubt he was worth more than a million or two prior. So once again we have a powerball winner.
Tikun Olam Ltd began with 10,695,394 shs, has sold 1,868,729 leaving him with 8,826,665 worth $203m. Tikun Olam is an Israeli medical cannabis company which was founded by (and I assume 100% controlled by) Tzahi Cohen whose net worth was listed as $950k in June 2017. Read powerball winner.
Zola Finance Inc. began with 15,525,404 shs, has sold 1,119,716 leaving them with 14,405,688 worth $331m. I canfind no info outside of their involvement with medreleaf on zola, so I assume it is another holding company for someone who has one a large powerball draw.
My point of all this is you have a group of people that were doing alright and now suddenly have $100's of millions. I think in these situations it comes down to how much money do you really want and need. I think most of us would be more than happy to do a deal and walk away with a couple hundred million...
IPO blurb. Also note they sold into subsequent financing events as well:
MedReleaf Corp. ("MedReleaf") (TSX:LEAF) today announced the successful closing of its initial public offering and secondary offering of an aggregate of 10,600,000 common shares of MedReleaf at a price of $9.50 per common share (the "Offering Price") for aggregate gross proceeds of $100,700,000, with MedReleaf and certain shareholders (the "Selling Shareholders") receiving gross proceeds of $80,700,049 and $19,999,951, respectively.
The common shares will commence trading today on the Toronto Stock Exchange under the symbol "LEAF".
Pursuant to the Offering, MedReleaf issued 8,494,742 Offered Shares from treasury (the "Treasury Offering"). In addition, 2,105,258 Offered Shares were sold pursuant to a secondary offering (the "Secondary Offering") by the Selling Shareholders. MedReleaf will not receive any proceeds from the Secondary Offering.
GarlicToast wrote: Ap666 – I don’t know exactly what ACB is willing to pay for Leaf but I would not rule out a second engagement with ACB and Leaf to get the deal done. I been a long time Aurora investor and been through the hostile takeover fiasco with CMED and it was not pleasant. CMED investors did very well, Aurora not so well, share price drop from $15 to $7. I am hoping a second engagement and a friendly merger talk between ACB and Leaf is still possible and we can all reap the rewards.
I still can’t get a straight answer why Leaf is up for sale? Thoughs anyone.
-Cheers - GT
apollo666 - (5/4/2018 10:31:44 AM) Morningstar Quant Rept. Values LEAF at $31.60 Wonder what Aurora wants to pay?