GREY:CNTTQ - Post by User
Comment by
pulverizeron Jul 29, 2019 11:38am
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Post# 29970683
RE:TRST sinks ago
RE:TRST sinks agoEverything you said was smart until you said you'd buy in and hold long at $2.
When HC suspends it, it will be for a long time. HC never says the time duration but with Bonify as a barometer you can assume at minimum the same length of time (7 months so far, heading to 8)
Bruce Linton said 1yr, he's probably right.
If it is suspended for a year the potential risks:
1) loses all its patients
2) delisting on the NYSE with litigation
3) licence is worth $0 and nobody will buy the asset for a merger
Why #3? Because the location will be a money pit. Look at what RavenQuest is investing in Bonify to try and keep it going.... why? Let it burn. If a firm wants another licence it is 60 days after submission of the evidence package to get a licence on a property. What value is there to stringing along CannTrust for a year when an LP can simply get one in 60 days untarnished.
LP's will only want the hard assets and that is a chapter 11 asset sale, not a merger. The assets need the licence to be removed and then apply for a new licence and then wait 60 days. Way better value to an LP then paying for a year of dead operations.
A bag holder will realize the true value when this plays out.