GB Group Ord Shs GBGPF

Doing the math

[stockhorse10]

Was burning some brain cells and figured out that if I sold 100 shares of ACB and and spent that money on CMED shares at today's market price...after merger I'd receive 114 ACB shares back at the 3.4 - 1 ratio by definition in the terms of merger deal, does this sound correct?

[Bagofhammers]

3.4 irregardless of price. CMED should be higher which is unusal in a now friendly aquisition. 

[WeedMadeMeRICH]

This post has been removed in accordance with Community Policy

[stockhorse10]

I seem to recall reading somewhere you had to own your CMED shares prior to the original takeover bid which was sometime in November or your ratio would be adjusted..anyone no anything about this?

[Duxing]

How would you think such elway? Every share has the same right in term of ownership no matter when you got it!

[stockhorse10]

Seem to recall reading it when merger deal first came out..it could easily be manipulated by large shareholders with many shares to improve their holdings...I can sell 100 shares of ACB right now and buy CMED...and get 114 back with 3.4 - 1 ratio at today's market price

[Bagofhammers]

You can, but purely for arguments sake, if ACB goes down to 10 bucks and you pay 40 bucks for CMED it is a losing proposition.  Again it is all speculation with many moving parts.

[stockhorse10]

Not really seeing I'm long on ACB anyhow...at my share level...I'd make an extra 998 shares at today's market value if I sold...bought cmed and hoped vote goes thru...price per share does not matter on return...still getting 3.4 - 1 ratio

[shak119]

let me Guess...you had 6000 ACB   ?

[stockhorse10]

7000  shares × $13.10 = $91,700 ÷ $39.05 = 2348.27 shares × 3.4 =7984...for an extra 984..not 998..sorry..was just from memory earlier

[stockhorse10]

I just went back and found it...it was a comment on the ACB stockhouse message board that looks like had no merit...apologize for any confusion...GLAD and happy trading

[shak119]

somebody came up with Nov 22, I called him out on it, to be honest I never checked if he had replied.

[FishingBC]

you can ......and this is exactly what the boys at Aurora are doing right now while driving CMED shares down to pick them up even cheaper!

[FishingBC]

Best thing to do......Hold on tight to what you have or take a chance on better position.....no matter this is no1 stock to own in mmj stocks ....hands down!!

[MartialArts]

Agreed!  This is the #1 stock to own in this space.  It continues to show the strongest leadership in the sector rotation graph which I think I know how to screenshot and post.  I found my notes.

[7Twiggy]

Not sure it is number one, but it is certainly in the top three. Can't wait till the deal closes and the price settles down. Think both ACB and CMED investors will do very well.

[shak119]

I thought more demand=higher price...but here what I noticed today..CMED and ACB are in step 1=2.9 Ratio (price wise, if this is true what happened to the cash component), furthermore if the above ratio is correct and intended to be, it means when ACB settles down at $12.65 CMED will be 36-37 range.

[stockhorse10]

The thing is Aurora had no way of knowing what way this could of went...I myself finured they'd get a spike off the news while cmed would remain pretty level resulting in a better than a 3.4 ratio for ACB...As it is, worked in reverse

[NGlong]

Ok so ACB said they will pay 1.1 billion for CMED so if CMED has 24.433341 million outstanding shares that would give you a CMED share price of 45.02? What I get from this merger was ACB will offer the 3.4 ratio to 1 ACB share at a $12.65 so if ACB should go lower than $12.65 ACB would cover or front the first $140 million below $12.65 after that its fair game, so I am realy puzzled as to why CMED

[VENMan]

There is two options in this deal for CMED Shareholders (1) You get 3.4 shares of ACB for every share of CMED you have. (2) You get $5.70 Cash per every share of CMED you have and 2.9 shares of ACB for every CMED share you have. You have to contact your Self Direct Broker and tell them what option you want. ACB has put a cap of $140 million for those CMED shareholders that want cash and 2.9 ACB

[NGlong]

VENMan first option 1) 3.4 to 1 means your ACB is worth $12.65 (which makes CMED worth $43.01) 2) opiton 2.9to 1 + $5.70 (assuming you mean affer the ratio) would make a CMED share worrth $53.214? So as you can see very puzzled why the CMED share is down so much?

[VENMan]

$53.14? That's wrong. Using $12.65 for ACB (1) 3.4 X 12.65 = $43.01 option (2) 2.9 X 12.65 = $36.69 + $5.70 = $42.39  It all comes down to what share price you want to use for ACB which will change the value of CMED. It closed over $13 so plug in that number for a higher value for CMED shares. Take Care, I'm done with the math ALL IMO!! GLTA

[shak119]

Correct but keep in mind the cash option ratio is actually 2.9493 and not 2.9, that difference amounts to $.62/share, it adds up pretty quickly. 12.65x2.9493=37.31+5.70+43.01

[MartialArts]

There is usually a default option and knowing ACB, the default option will be 3.4 shares swap. If you are registered to receive the circulars, you will get a notification on what option to pick if you want the fixed $5.70 in cash instead of the .5 shares and yes, you have to call your broker to select the option.  I've never seen online elections of options although, you figure in 2018

[longonMJ]

Well, by putting a cap on the number of dollars that they are willing to pay out for this takeover, it would appear clear to me that Aurora would much rather pay with issuing more shares, as opposed to paying with cash. As a result, Aurora would much rather have their share price stay above the implied price of $12.65 per share as this would entice Cannimed shareholders to take the 3.4X all share

[silkroad007]

Bingo! But are you really surprised it traded down, look st all the uneducated drivel on this board. If weed stocks did one thing it was bringing out retail that has no clue .  Takes 3 seconds to digest the offfer and realize your way better off flipping to VMED.  The gap will correct in due time.  The volume is really low on this stock so not to many bright bulbs can affect the

[silkroad007]

Meant CMED obviously 

[NGlong]

i understood it's all good

[NGlong]

That being said is this a golden opportunity to buy CMED?

[silkroad007]

I think so, I’m fact I know soo based on the facts but I’m really not sure why the gap hasn’t closed between the two, usually this happens it’s straight to the ratio then lockstep.. I can only assume it’s because there is such low volume on CMED..