RE:RE:Nice 14% uptick forlou444 wrote:
Why is B stock trading higher than Acreage fixed $acrg.au. What is a plausibile explanation. It's a first
If you believe that this deal will trigger with the proper legislation such that non US interest feel that their investments will not be confiscated or criminal charges levied then you need to look at the intricasies of the deal.\
At today's shareprices 3 shares of Acreage fixed will get 1 share of Canopy in a swap.
$1.40 worth of Acreage floating shares have a redemption price from Canopy of over $6.
Fixed shares only need paper stock certificates for Canopy to take 70% control of Acreage. It doesn't cost much to print those and the sharefloat will need to increase anyways when the US investors that haven't picked up shares, pile in.
The Acreage floating shares don't have to be cashed in right away at Canopy's discretion but they have already said that they would pay $6 plus cash or equivalent.
My gut tells me that those Acreage shares that are overdone to the downside will do catch up pretty quick and will be in great demand because Canopy is the world's leading pot company with a huge big brother backing them for the longhaul. That would be Constellation Brands who also backed Terrascend and Gage, I believe.
What are those Acreage floating shares going to be worth when Canopy shoots up its old highs when they really start grabbing profits from the US marketplace? I tend to think that Canopy will probably want to grab those floating shares when they can get them for $6 ish.