RE:RE:RE:RE:crazy StayInvested - (3/2/2021 2:23:34 PM) RE:RE:RE:crazy If you are all wondering what is happening, 2:53 into the video.
https://www.bnnbloomberg.ca/video/james-hodgins-discusses-supreme-cannabis~1670913
James explains somewhat what happens with these plays.
They buy debt + short. Make it on both ends for as long as possible. With the inclusion of ETFs, this has become all the easier (cheaper interest rates).
This will trade sideways for quite some time I fear. This recent increase in SP is due to the ETF inclusion as well, so its a double edged sword.
StayInvested - if it is just a straight convertible hedge with nothing nefarious then they won't be affecting the share price. I.e. they short the conversion amount, and ride the $36.5M deb to maturity and just collect the 11%. In this simple scenario they are just like a regular lender and won't affect anything.
I am saying as the SP gets higher and further from .285, at some point they will cover the hedge and convert the deb and sell for greater profit then riding it out to maturity.