RE:RE:InterestingRaguu17 wrote: Aurora could have made a partner and sold 20% gotten a 20% bump and had a "big brother" to look out for them. Instead they let Booth grumble his way through his ego fueled shopping spree and GAVE 20% to the market. Which was a better move? Ah but in the future they claim they will be worth more. they said that last year as well. We aren't worth more year over year are we. Thats WEED also enjoys its body gaurd.
The Fool is just that. No different than the relentless idiocy on here. That said what makes us believe Cam and his "we aren't gonna use the dilution
option" claim? They have diluted at every other chance they could so far.
If they continue to make the next premium laced deal before they have revenue justification for the last premium laced deal we will go nowhere. First those "partners of choice" sell off (short) before the deal is finalized. The smart shorties pile on. Then the panic sellers. We have missed our innings because of this and are now dealing with a devalued ACB currency that they are still trying to use in more deals. Even if it is just an option there is a reason they put it in there. You would think with the strategy of using ACB bucks that they would put some effort into protecting its value. I haven't seen that in the last year.
We apparently have the largest legal production on the planet and are worth half of what our comp is worth. That bothers me. If WEED were closer to our cap I wouldn't be upset. The difference to me is all these compounding dilution deals.
bionicjoe wrote: I see that Cronus is in the green again today so I was curious to do a comparison what the Altria deal has done for their sp compared to Aurora having no sugar daddy. Consider too that a Bank of Commerce analyst fixed CRON with an overweight rating a few days ago mainly because of Altria.
Since Dec 6, 2018, the day before the deal was announced the Cronus sp has climbed 53%.
In contrast, Aurora's sp has grown 33%.
Not too bad considering ACB had no multinational partner. They still managed to stay within 20% of CRON/Altria so it must mean the market is recognizing Aurora's potential even without their own deal right now. If and when an announcement is made I expect better then a 20% increase in the sp.
BTW, Motley Fool put out an article before the market opened in which it contained erroneous conclusions. ACB's Investor Relations should be made aware and a retraction demanded from the Fool. It has been made clear by Cam Battley that it is solely up to the company's discretion whether to pay interest or issue stock, not the noteholders. Cam further reiterated that ACB fully intends to pay the interest.
Just two days after announcing that it would be acquiring Whistler Medical Marijuana for $132 million in an all-share deal, Aurora Cannabis announced a $250 million convertible note offering, which comes due in 2024. Although this sounds like debt, and the noteholders could hang on to these notes in order to collect interest, they could just as easily convert this $250 million into shares of Aurora's stock. In other words, it's debt masked as more dilution.
That $250 million USD should carry then well into the time when we'll see substantial growth in production. IMO, any new acquisitions will be US oriented and paid for with the loan money. I think by Battley's reaction on the Midas show that management got a pretty good scare from the market reaction last Thursday. I can't see them being tempted to pull the tail of tiger once again with another dilutive deal.
As for a multinational partnership, all we have is the COO's word that they want to wait until they can bargain from a platform of strength. I know it's a rough concept to accept knowing they have passed up on offers of marriage already but just because ACB is still single doesn't mean management isn't keeping its eye on potential partners that are an even better fit than Altria or Constellation Brands. Who the hell drinks Korona beer anyway and has anybody seen the signs that say smoking kills? What's the hurry to partner with a company whose product causes lung cancer?