RE:RE:RE:RE:RE:https://www.embarkhealthinc.com/newsDefinitely some good info there.
1. Bevcanna was to issue 46.7M shares (doesn't include warrants and options) at a share price of $0.34. Now with market adjustments to the current share price (18c) that is now 116.7M shares + (warrants and options).
2. Embark shares will be released on the last day of each month for the next twelve months. That's 9.72M shares being released to the market at the beginning of every month for the next year. Why is this important? It's important because Hydrovest (MMJ Holdings) is getting desperate with their portfolio due to the following:
"HGV is seeking to reduce the 61% gap of the share price to NAV (9.5 cents per HGV share) by: i. working with HGV’s largest investment, Weed Me, to achieve a liquidity event during 2022 (investment value of $12.9m) to realise a material portion of HGV’s investment; and ii. realising underperforming and or illiquid investments - HGV currently intends to hold its Entourage Health Corp (Entourage) convertible debenture and recover full value (current HGV book value is 55% discount to face value) or when escrow arrangements cease (Embark Health/BevCanna and Vintage Wines Estates)."
That 61% gap of the share price to NAV gap has signicantly increased as the current share price is now $0.048. Hygrovest needs/wants to divest Embark and Bevcanna shares. Hygrovest only owns 12% of Embark but that is still 1.17M shares they will be looking to dump every month. This doesn't include the Bevcanna shares held in escrow. MMJ Holdings was a pre IPO investor in Bevcanna but has already divested all but the shares still held in escrow. You may say they will hold these new shares in Bevcanna but they are directly stating they need to divest.
From a trading standpoint there may be opportunities here. As with the shareprice increasing a couple of days before the Embark Health announcement (and then dropping immediately back off) there could also be share price bumps just before the beginning of each month. Hydrovest (and most likey quite a few Embark holders would like to see this happen before their need to sell shares).
Might also be interesting to see if Bevcanna revalues the warrants for bring in some cash to the company. Not sure if this is allowable or not.
You're welcome.