CannaRoyalty Corp C.CRZ

Cheaper to buy OH at these prices than CL directly example

[ACBCRZMARIMYM]

At closing CL=15.65

1000 shares of CL would cost me $15 650

At closing OH=11.65

1187 shares of OH would cost me $13 829

(1187 x 0.8428= 1000 shares of CL once deal closes)

Already a profit of $1821.

Did I miss something?

[NedStark]

Nope. You are spot on. The market and other investors are the ones missing something...

[Boomerk9]

the value of your OH share won't exceed 12.68 CAD , based on the agreed upon CL share offering at 15.05 CAD as arranged deal values as of Mar 29 2019.

[NedStark]

That’s incorrect. This isn’t a cash deal. It’s an all stock deal. The price will fluctuate with CL’s stock price.

[retiredcf]

Of course you are correct but I'm going to cut Boom some slack as he recently joined SH and has only posted 12 times so is probably new to the markets.  Should be a decent day tomorrow once cooler heads prevail and everyone pulls out their calculator.  Long and strong with either OH or CL. GLTA

[Boomerk9]

thanks retirecf 

[Boomerk9]

thanks for more clarification NedStark

[RockMaschine]

It will follow the ratio of 0.842 CL for every OH. So yes there is an arbitrage opportunity here for a few days while people sort through the details and the spread closes. For me I want to watch from the side for a moment to see how Cresco reacts over the next few days. No immediate financials to value them on as they just went public a few months ago. OH numbers come out soon and will let

[canuckinvestor]

I have been following CL for a while  OH is undervalued        Cresco got a good deal on some fantastic assets 

[Tradertimestwo]

RockMaschine. They are getting a deal on OH imo. 1.1 billion is cheap considering they will be doubling thier revenue with OH and only increasing MC by 20%.

[Troy23]

They are not increasing market cap by 20% what the hell!! Gotta learn about acquisitions and dilution. They are incresing it by almost 1000% from 500M to 5B. OH will represent 20% of Cresco

[Tradertimestwo]

Ugh. Whats wrong with you? Figure out thier share structure and try again. Even IF their MC was only 500million...how would adding 1.1 billion make it 5 billion? Lmao.

[investalot23]

that is incorrect. Look at there Power point combined they are worth 5.4 B. before the aquisition they were at 4.3 B fully diluted. 

[Tradertimestwo]

So 20 %....

[Tradertimestwo]

Dont forget OH was aiming for a 2019 exit run rate of 160 million in revenue. Together these two can expand rapidly. Dont doubt management or your DD. Will be great.

[NedStark]

OH should be trading at $13.19 right now. An arbitrage opportunity exists.