RE:RE:RE:BIG MONEY IS DONE AT TILRAY. COMING CANOPY WAYGreatly appreciate this explanation and the previous one by Mick which actually does make sense. Especially since they did not bothered to disclose the details of the private placement and the price point at which it was done.
My only concern is that if this is viewed by the marketplace as a negative on Tilray, then it will also most likely spread to the rest of the MJ stocks in this sector here, including the other quality ones like Canopy and Aurora.
Only point that I will disagree on is that this might not necessarily be the best deal ever in the sector. Especially when we still have Coke and possibly one of the big pharma's kicking the wheels right now.
Of course, it takes two to dance and the other partner has to be willing. And this might not be the case if the other partner is not willing to give up control, similar to what Canopy has effectively done by the time it's all said and done in terms of their deal with Constellation.
Peyton wrote: Those 100 million shares were paid at premium of 50% to where the stock price was at the time.
Those 100 million shares that were issued are not going on the open market to be traded. They got 5 billion doillars at a 50% premium and not 1 share is being added to the "tradeable float". They also have a partner who brings alot of value into where their business is headed.
Tilray is raisng $ via a private placement. They are going to be issuing shares which in turned are going to be all dumped on the open market. That is the defintion of dilution. Tilray is a real bind here. I believe Brenden(CEO) which the stock price was not where it is right now. Their market cap will turn away any reputable partner in taking an equity stake in their company. Their valued more then Canopy. That is ridiculous. And he knows it. Raising this $ is the evidence that their are no conversations going on with any serious parnerships.
Canopy's cash injection from Constellation is the best deal this industry will ever see up until when their final takeover occurs.
longonMJ wrote: Mick;
Can you please explain to me why the equivalent of 4 or 5 million additional shares is considered to be over dilution, while the issuance of well over 100 million additional new shares by Canopy is considered to be quality?
Hopefully, you can explain that to me in a rational way that makes sense since I am a Canopy shareholder and do not own any Tilray shares at all.
OriginalMick wrote: That’s what I’m talking about. No body will invest in that over diluted Tilray going forward. They will want quality. We are quality. Guys our quality is what makes us quality. Mick