RE:RE:RE:RE:RE:Today's trading or lack of "The exchange ratio has nothing to do with speculation as to the new price."
Actually the exchange ratio has everything to do with speculation as to the new price. For hypothetical estimation, the new price is a function of the price of BNCH times the exchange ratio, and is dependent on the price of BNCH which needs to hold steady. Now this is just a calculation, and doesn't take into account actual investor sentiment - traders may decide they hate the deal and bid down the post-merger price with no regard to purely numerical considerations. Or they may bid the combination deal higher, as they have in this case, at least for the first day.
Sometime back, July 28, (with a followup on Aug 10) I suggested a hypothetical arbitrage trade for TAU, when TAU was trading in the 50s. If BNCH maintained its 24.5 cent price until the deal was closed then by buying TAU at, say, 55 cents, when the conversion took place then 24.5 x 2.5584 = ~62.5, or an arbitrage gain of 7.5 cents per TAU share, a little under a 15% gain.
In fact the gain turned out to be a little better than that.
Another poster stated they bought old-TAU at .54, which turned out to be a pretty good trade.
If someone bought 10,000 old-TAU at .54 after the deal was announced then they gained about $1390 on the arbitrage alone after the deal completed and the first day of trade.
Buy 10,0000 at .54: $5400, value of 9,840 at .69 post-consolidation: ~$6790. Gain: $1390.
Why old-TAU was selling at a big discount I don't know..