OTCPK:NWKRF - Post by User
Comment by
Smoogirlsimson Aug 09, 2018 3:33pm
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Post# 28435663
RE:Why is hip stuck between .50 and .51 the past 3 days???
RE:Why is hip stuck between .50 and .51 the past 3 days???Valuation is the key. Back during the Cannimed deal in Nov 2017 each HIP share was priced at $0.505. With outstanding shares at that time of 424 million (before the two financings that added the additional 130 millions shares), this represented a market cap of approx 214 million. We are currently sitting at a market cap of 282 million. Until HIP starts to make money hand over fist after legalization in October, there is no reason why it should be trading higher. All the hype in the Cannibas sector is already priced in. Investors now need to see growth.
Arrangement Summary The Arrangement Agreement provides that Newstrike shareholders will be entitled to receive 0.033 common shares of CanniMed for each Newstrike common share held, representing consideration of approximately C$0.505 per Newstrike common share based on the closing price of CanniMed common shares on November 14, 2017. Upon closing of the Arrangement, Newstrike will become a whollyowned subsidiary of CanniMed.
Read more at https://www.stockhouse.com/news/press-releases/2017/11/17/cannimed-to-acquire-up-cannabis-inc-newstrike-resources-ltd--tsx-v-hip-to-creat#3WIdmZxCB81yI0kv.99