Emblem Corp EMMBF

ALEF

[Artacus]

Hello,

 

I would like to understand what this will mean to my portfolio if the headline is approved.

 

"The Agreement calls for Emblem shareholders to receive 0.8377 of an Aleafia common share

Read more at https://www.stockhouse.com/news/press-releases/2018/12/19/aleafia-health-inc-to-acquire-emblem-corp-to-create-new-medical-cannabis-leader#0YSSwkDfR1b0BtdM.99"

 

Let's say I have 1000 shares of EMC, does that mean that I will receive 1000 * 0.8377 = 837 shares of ALEF, regardless of the stock price?

[ExPluto]

Yes in that case you would receive 837 shares of ALEF, regardless of stock price. This means that EMC's share price should be approximately 0.837 times ALEF's share price. Unfortunately it's not. EMC is actually trading at 0.720 ALEF. This is partially becasue there is lots of sentiment that the required 2/3 "yes" vote won't pass in March, meaning that the 1 to 0.837

[LovingLoveWEED]

This post has been removed in accordance with Community Policy

[LeafRider]

This post has been removed in accordance with Community Policy

[Artacus]

Thank you very much for this precision.