Post by
stokpiker on Jan 03, 2019 12:41pm
GTEC GENE
the SP for these seem to be decoupling, is the deal still happening, why has mgmt not provided an update??
the company NR in Nov included info on how the the conversion ratio would be cacluated
Under the terms of the proposed Transaction, holders of GTEC common shares will receive approximately 40% of the issued and outstanding shares of Invictus post closing.
Assuming completion of the Transaction, the issuance of Invictus shares to the current GTEC shareholders represents an approximate 25% premium to the 30-day volume weighted average trading price of the common shares of both GTEC and Invictus on the TSX Venture Exchange (“TSXV”) as of November 15, 2018.
I did a rough calc of the 30-day volume weighted avg at Nov 15 for both companies
GENE 1.40
GTEC .88 25% permium over GTEC weighted avg is 1.10
the ratio between GENE @ 1.40 and GTEC @ 1.10 is .785
so IF the deal is completed as per the NR, then GTEC shares should be worth .785 of GENE shares
if the deal was completd today with GENE trading @ .94 then GTEC would be worth .74, it's actually trading .55, so there is a .19 profit if the deal is done on the above terms, that's actually a 35% premium compared to the 25% premium when the deal was announced, why is the premium growing instead of shrinking which would normally be the case if the market expected the deal to complete
either there is a significant profit to be made on GTEC shares when the deal is completed or the deal is not going to happen or the deal terms will be changed
we need an update!!
Comment by
Vroom2017 on Jan 03, 2019 3:00pm
Equity Guru has that covered. https://equity.guru/2018/12/31/gtec-holdings-gtec-v-rises-invictus-merger-discussions-continue/ Just patience, Norton has shareholder's best interest at heart. Call their IR if you are having concerns.
Comment by
stockguy655 on Jan 04, 2019 2:20am
This post has been removed in accordance with Community Policy
Comment by
Burch71 on Jan 04, 2019 10:49am
Thoughts on doubling in the next two weeks?
Comment by
stokpiker on Jan 04, 2019 1:00pm
GTEC playing a little catchup on GENE this morning discount is now 27% compared to 36% at the close yesterday I expect it to get closer to 10% once the market thinks the merger will happen on the original terms MJ market rebounding, GTEC executing on plan and final details of GENE merger could provide a big lift for GTEC share price!!
Comment by
Vroom2017 on Jan 04, 2019 2:05pm
My thought is, why didn't anyone buy when it was low volume? I sure did, and I see a double + 30%