GB Group Ord Shs GBGPF

Should I hold or sell Cannimed

[emon1970]

I bought Cannimed shared when they announced the merger beginning of last week on $38, hoping to get 3;1 share from ACB. As the prices are going down on Cannimed is there any chances that after the merge I would be able to get my return back.  Should I hold or sell...will appreciate your insight...

[moneytunes]

Im trying to decide the same thing @emon1970 .. and the upcoming acquisition by ACB definitely adds to the conundrum. For instance many are saying that the offer values CMED shares at $43 however it is not a 100% cash offer as I understand it the only cash component is $5.70 with approx 2.94 Aurora shares. So therefore is CMED really valued at $43 because I believe that would be dependent on the

[holdandhope]

Likely going to be cyber-lynched for saying this... but i question the same and i am not even at a loss yet.  I bought both back in November... Cannimed ~20$ and Aurora ~6.80$... i'm going to base my decision on how we come out early next week.  I am not a basher of ACB... but they blossomed in November following the takeover news... before this ever started they were ~4-6$.... @ 3.4

[StayInCash]

There is no reason to sell CMED at these prices unless you bought them very low and want to be sure you get cash. Here are the numbers. Say everyone, by default, select the "all in shares" option.  That's means the full $140M is available to those who select the cash+share options.  There's about 24.5M fully dilluted shares out there not owned by "Aurora or it'

[Overdoze1243455]

thanks you your  post, very helpfull . 

[Thelonious]

sorry I am not getting the math.    I thought that 5.7 was the max. cash per cmed share, so anything cashwise more than E is not possible.  also should it not be 5.7 cash plus 2.9493 shares not 3.4  isn't is also the case that all the cmed shareholders will get the same deal or you are just outlining possible scenarios  I think the range should be from 0 cash and 3.4

[StayInCash]

$5.70 is the minimum cash you will get if you select the option of cash plus shares.  If you do nothing, then it's $0 cash and 3.4X ACB shares. Remember it's $140M devided by the number of fully dilluded shares out and not owned by Aurora so $140m/24.56 shares=$5.70 per share But obvisouly not all 24.56 shares will elect the cash for the $5.70 is worst case scenario.  It's

[Duxing]

Moron thought! Forget about the stupid research. unless people are as stupid as you, everyone will elect full cash option when ACB is traded at12.65 or less.

[StayInCash]

Duxing, is your hostility directed at me?  "Stupid research"?  From Harvard Business Review and other credible sources? Perhaps you can provide some insights as to when the election between options has to be declared?  And yes, obviously, if ACB is trading at less than $12.65 most people who understand the dynamics will elect the cash + share options. There's no

[Overdoze1243455]

we are here to help each other to find the right direction, people please calm down.  StayinCash, your research is very helpfull,  surely people in here  understand your basic math if acb sp for example. on Friday, after average down, my cost per share is 30.62 acb now = 8.50. if i choose option 1  8.50 x 3.4 =  28.9  - my average cost =  -1.72  if

[Thelonious]

ok so what you are saying is that the ones that can vote who opt for the max. cash option can get the cash that the others who choose by default get all stock? for example. I can't vote so I assume will get all stock.  so some one who can vote wants max cash will get my cash bringin their max cash above 5.70 I guess I'm confused because the offer says max. of 5.7 cash so I'm

[Sledd66]

thats not true at all. Max 140 mil is based on if every single share out there elected the 5.70. If only half the shares did they dont get 140 mil split. It just means aurora only spent 70 mil instead on the cash portion. 140mil max cash option is a hypothetical scenario if all elected cash that is how much it would cost aurora. One thing i mentioned earlier though that got burried in this forum

[Thelonious]

ok again this is my most important question that needs to be answered:    when the votes go in, do we all get the same deal?   or do some get the cash if they want it plus some acb stock and others get all acb stock?    I would think that everyone gets the same deal once the vote is in and they go with the majority of what people want.   so the max cash

[Sledd66]

i would think when its time to make the deal then cmed is forever halted so nobody else can get in and everyone has the option to choose all shares or cash and shares. It will probably be an elective you choose through your broker. Nobbody getting more then 5.70 per share. If 140 mil wad being split between all those who chose cash option then what if only 1 single share chose cash and all others

[Sledd66]

if you check the agreement they outline the max in both senerios. If its all shares then aurora is diluted by adding 84mil shares.. the absolute max amount of new shares issued if all cmed choose the 3.4 option. If all choose cash option then aurora only diluted by 72 mil shares more based on total cmed shares multiplied by 2.94 but this option will cost aurora a max of 140 mil spent. So basically

[Thelonious]

ok I agree with you for this post and your last one so I think that stayincash is wrong in his analysis with all the options where cash is more than 5.7 cmed share stayincash please comment I do agree with your other posts though and find you to be very informative

[moneytunes]

I wonder why they didn't write into the offer that the maximum cash per share is capped at $5.70...... that would have made things a lot clearer to everybody. Logistically, if it was not capped at 5.70 a share, it could get very complicated and how would they manage all those incoming requests.... on a first-come first-serve basis for instance?

[StayInCash]

Elections are done for each of your accounts and applies to all your shares for that account. If you don't do anything, you get all shares.  Most small investors who don't real won't do anything or if they are bullish on ACB will simply do nothing to get the full default 3.4 ACB shares per CMED. Everyone votes individually. Whether to merge or not is decided on the  66 1/3

[Sledd66]

140 mil is max based on if all selected cash which is 5.70 per share. Nowhere does it say that 140mil is being paid regardless of who chooses what. What it does say is that its 140 assuming everyone elects the cash option because thst is the math of all cmed shares x 5.70. 140 mil is absolute max paid in an all cash senerio. The deal is 1.1 billion based on aurora being worth 12.65 a share. If 75%

[Thelonious]

sledd66 I think what you says makes sense to me. I think to clarify we should write investor relations for confirmation  I also think they will just give all shareholders the same deal.  It would be too much work otherwise.   I think it goes back to my first post.  acb below 12.65 max cash option is best.  acb over 12.65 all shares is best.    is the

[Thelonious]

I hope you are right because it seems fantastic to take the cash option  I think we should write an email to their investor relations to clarify this do I get a vote even if I just started buying cmed 2 weeks ago?

[emon1970]

Thanks it was a very hlepful response.

[MartialArts]

Best post of the weekend, I snipped the key postions but I wanted to quote it to bring it to the forefront.  Thank you for putting the effort to put this together!

[PROtrading]

OMG!!! Actual clownhouse members with calculators!!!!  I must have died and gone to Paradise! LMAO!!!! Godo stuff guys!  Looks like Justice League is winning on this one!  LOVE IT!!!!

[floresdeguzman]

How to both for cash?

[Overdoze1243455]

if you  think cmed will drop  to 0   or  acb will be disappeared in the world, then sell it now.  remember 2 is greater than 1, this is always true.  if i loose $1 , Mr Brent Zettl will loose milion of dollars :) hold it, wait for the merger , wait for legislation, wait til the end of the year ,....  if necssaary I will wait til the date i am