RE:RE:RE:RE:Eventually Burcon will get taken out
First off I want to say, that the likey hood of this happening, is not great. But I want to express my own guess and reasoning. So with that said, what is Burcon Nutrascience? "Burcon NutraScience Corporation is a global leader in innovative technologies for the large-scale production of high-quality, cost-effective plant-based proteins and ingredients for use in the global food and beverage industries." "With over 285 issued patents and more than 250 additional patent applications. Who "On May 23, 2019, Burcon established Merit Functional Foods Corporation in a joint venture with three veteran food industry executives. Merit Foods is building an 94,000 square foot state-of-the-art protein production facility in Manitoba, Canada, where it will produce, under license, Burcons novel pea and canola protein ingredients." * ( I pulled this directly from Burcon website). Things that I think we can all agree on are, that the Joint venture (JV) are reasonably, and at arms length financially backed by the Canadian government to some extent. Are in the midst of full scale commercial production. Have said to have non disclosure agreements signed with big food companies. And that Burcon is also looking to be up listed to the NASDAQ. Among others, and there are more. But these are the ones Im focusing on for the Bill Ackmen PSTH spac merger/take over. So who is Bill Ackmen? He is the founder and CEO ofPershing Square Capital Management, a hedge fund management company. What companies are in their portfolio -QSR / Restaurant Brands International Inc. -CMG / Chipotle Mexican Grill, Inc. -MDLZ / Mondelez International, Inc. -NOMD / Nomad Foods Ltd. -APD / Air Products & Chemicals, Inc. -CP / Canadian Pacific Railway Ltd. -BKW / Burger King Worldwide Inc. -PSTH / Pershing Square Tontine Holdings, Ltd. And once again, lots of others, but these are the ones I'm focusing on for my reasoning. What do these have in common,.... They're all in the business of food, food production or movement of commodities, with the exclusion of PSTH. So what is PSTH? Pershing Square Tontine Holdings, Ltd. (PSTH), a Delaware corporation, is a newly organized blank check company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with a private company. PSTHs sponsor is 100% owned by the Pershing Square Capital Management, L.P. (PSCM) funds. (Copied straight form psth website along with following) PSTH has not yet selected any specific business combination target.PSTH intends to pursue merger opportunities with private, large capitalization, high-quality, growth companies. PSTH will use PSCMs substantial experience in identifying, analyzing, and determining business quality and the sustainable competitive advantages of a target company, as well as PSCMs due diligence and negotiation expertise in executing a transaction.PSTH will seek targets in four principal market segments: high-quality IPO candidates, mature unicorns, private equity portfolio companies, and family-owned companies. Their Acquisition criteria is to seek to acquire companies that have the following characteristics: (bold are their criteria and the plain text is my reasoning) -Formidable barriers to entry. This could be all of Burcon patents -Limited exposure to extrinsic factors that we cannot control They got pitura seeds sourcing and growing peas and canola for them. And yes there could be crop failures, but if you got Bunge helping you source peas and canola and access to a rail system to move commodities you might already have a back up. -Strong balance sheet PSCM have many companies with in their portfolio that could use the proteins that Merit will be producing, for dairy and meat replacement that they use in their business. This could lead to more money circulating with in PSCM helping with stronger balance not only for PSCM but also the balanced sheet of PSTH(the new Merit/Burcon). -Minimal capital markets dependency The plant is built and patents are registered, all the heavy lifting is done. Financially backed by the government Producing products that PSCM could use in their differ business segments -Large capitalization The plant based industry is explosive and has room to expand -Attractive valuation Like people have said Merit and Burcon could be an easy take out target -Exceptional management and governance Just think of all the talent people that came up with these "technologies" So I'll continue this tomorrow. But this sets the bases of why I think PSTH might want to take out Merit/burcon. Let me know if you all are still interested in hearing what I have to say. Or you can just tell me to stop wasting my time and to just shut up. It doesn't matter to me.