RE:RE:ACB and TGODgoldingot wrote: The deal between ACB and TGOD does not contain a provision for ACB to purchase all of the shares of TGOD at this time. Just to summarize Aurora can buy:
1) 8% of TGOD, 90 days after IPO (extended to Oct 12th)
2) 8% once Valleyfield is granted a cultivation license
3) 8% upon Valleyfield reaching 50% completion
4) 12% once TGOD reaches $100,000,000 in sales
All the potential purchases by Aurora of TGOD stock must be at market rates minus 10%.
If Aurora increases its ownership in TGOD through these milestones, it would make TGOD one of the most well-funded companies in the entire space.
If it was Aurora's goal to buy TGOD completely, it would make much more sense to come in with a friendly offer before these milestones are achieved.
And yes, a deal will be done with one of the beverage companies, whether it be Diageo, Coke of some other large company with world wide sales, you can count on it. You can also count on Big Board listings in the USA by both companies, imo.
If ACB came along and offered 0.75x ACB shares (for example) for every TGOD share right now, tomorrow, you bet they'd be all over that.
Insiders voluntarily locked up the bulk of their shares for 42 months - in a buyout situation all escrows are removed. Liquidity for them would be quite an incentive, no?
In a buyout situation those warrants would also come unlocked and move to full intrinsic value, and that's a heck of a jump from here.
I suppose ACB could slap down the ~$135M or so (approx) to take down the next 8% with the money they inherited from MedReleaf, but if that was the case, why delay the payment forward a month?
ACB knew a big move in their share price was coming - now, how are they going to utilize that? Either they will raise more money near term, or inhale the TGOD whole.
I am betting on the latter.
PS: Why'd Cam resign? Maybe he just doesn't like weed anymore.