BLACKROCK Municipal Income TRUST V.BFK.P

Primary Symbol: BFK

BlackRock Municipal Income Trust (the Fund) is a diversified closed-end management investment company. The Fund's investment objective is to provide current income exempt from federal income taxes. Under normal market conditions, the Fund invests at least 80% of its managed assets in investments the income from which is exempt from federal income tax (except that the interest may be subject to the alternative minimum tax). The Fund may invest directly in securities or synthetically through the use of derivatives. The Fund's investment policies provide that it invests at least 80% of its total assets in investment grade quality municipal obligations issued by or on behalf of states, territories and possessions of the United States and their political subdivisions, agencies or instrumentalities, each of which pays interest that, in the opinion of bond counsel to the issuer, is excludable from gross income for federal income tax purposes. Its investment adviser is BlackRock Advisors, LLC.

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BLACKROCK Municipal Income TRUST > Thoughts?

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Comment by quinlashon Oct 31, 2020 10:20pm

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Post# 31819482

RE:Thoughts?

The proposed R/S being voted on in Dec may simply be "business as usual" with the company doing what is necessary to remain listed on the NYSE and attract / retain American investors. If you are of the belief that HEXO wishes to expand and do indeed have plans to take the #1 or #2 spot in Canada as as top supplier then you can start to entertain other possibilities of what is going on.

Assuming the R/S goes forward and they do indeed do this with a ratio of 8 to 1 the new sharecount will work out to 60 Million Shares. Such a low sharecount is not ideal for a company but it could open the door for a merger with another company that would compliement HEXO's business plan going forward.

I have looked at this a few times myself and a merger with Molson is definately in there and considering that many JV's end with a merger or acquistion then Molson could be in play. A second possibility would be a merger with another LP that compliments HEXO's longer term business plan and fills a gap in the HEXO offering. That gap "may" be medical, and a good fit to compliment HEXO in that regard would likely be Aphria.

At this time HEXO is referring to voting on the R/S on Dec 16th so, although it may be in the list of possibilities, HEXO would also be implying that any merger with a large player is not in the cards for at least 4 to 5 weeks (or longer).

The low sharecount does make issuing new shares easier and to issue shares for the purpose of an acquistion would be viewed as a positive for the shareprice. HEXO has been issued a new license for Bellville on Oct 21st, that new license could be for edibles, an acquistion of a smaller company for the production of edibles (or to purchase their distribution channels) would also fit well into HEXO's plans, again IMHO.

With news out on the R/S already the market would likely still respond very well even if a acquistion was announced prior to the R/S taking place (IMHO).

Have to get back to eating excess holloween candy before the Wife figures out we didn't get that many kids tonight :)

Q