RE:RE:RE:Why Dilute??? It's a measly 6.2 Million shares. This will get chewed through in a day and a half of trading.
A drop in the bucket. So chillax, the sky is not falling.
Ebbu is smart enough to take $25 Mil cash now and the rest in shares that will be worth much more in the future. Plus an additional bonus of an extra $100 Mil if certains milestones are met within two years follow closing.
This is a very good buy for Canopy. An additional 40 potential patents to add to Canopy's 39 filed for patents and a whole lot of medical / science research to go along with Canopy Beckley and Canopy Health Innovations and so on.
It's all good man.
"At closing, Canopy Growth will pay
CDN$25 million in cash and issue 6,221,210 Company common shares ("shares") to ebbu in exchange for the assets being acquired. Up to a further
CDN$100 million in purchase price shall be payable if certain scientific related milestones are achieved within two years following closing. Canopy Growth will have the option of satisfying such milestone payments in cash, shares or a combination of cash and shares. If such payments are satisfied in shares, the number of shares shall be calculated based on the volume weighted average price of the shares on the TSX for the 20 trading days immediately prior to the date of achievement of the applicable milestone."
BaystreetBrian wrote: They just got 5 billion, what are they saving for? I do like a hemp acquisition though
Treeswingler wrote: Perhaps to save on cash. Also, the company they were buying wants the best deal for them selves so they want what benefits themselves. Not sure why they chose that though.
BaystreetBrian wrote: There was no need for that, shouldve been an all cash deal, what are the benefits, if any, in paying with shares?