RE:how do I get 29.44 for my stockftwood wrote:
sorry, newbie investor here. What happens now? How do I get 29.44 for my stock? I don't want ACB shares.
Short answer is "You dont"
The deal is an "All Stock" Deal. This means if you want to get money out, you have to sell your shares. Right now, people are only willing to pay ~$25.20, so you can sell it now and make market price at the time of sale, or you can hold out and hope that the price goes up higher as we get closer and closer to the finalization date.
If you do absolutely nothing, you'll eventually get 3.575 shares of ACB for every 1 share of LEAF.
Or you set a sell order for a price you're willing to accept and hope it gets triggered.
I've never seen a share price hit the "actual value" of the all stock deal before, and they usually trade at a bit of a discount. Kind of like "I'll take less money to get my money right now, instead of waiting and relying on another stock to not tank"
One thing you can do to see what your "fair value" is, is to take the price of ACB ($7.88 as I type this) and multiply it by 3.575 = 28.171.
So technically, provided ACB doesnt drop anymore, and the deal goes through, your LEAF shares are worth $28.17.
The inherit risk of
(1) ACB going down
-and-
(2) The Deal Failing
means that the stock will trade at a discount, it just happens to be a pretty big one right now, but some of the reasons are listed in a few other posts here (like the Cannimed deal)