Newstrike Brands Ltd NWKRF

CMED - HIP transaction

[Asterix99]

I don’t own the shares of HIP. I have been following it because it was in the news. I need some clarification. CMED offer will give 0.033 shares for 1 HIP share. At today’s close that is 0.79. Why are HIP shares so high and why did they run up to $3.30 when this deal was known for some time now. IS there a better deal? This doesn’t make any sense. Why would anybody buy shares above the deal price? I would appreciate meaningful explanation. Thanks

[Extalliones]

No one is going to be able to give you an answer to that.  Many are speculating that ACB was buying shares in HIP to drive up the price to prevent the acquisition from happening.... personally, I just think many people got caught up in the news release that HIP had obtained a sales licence, and thought that the CMED deal likely wouldn't go through given HIP's rising share price. 

[Asterix99]

Thanks. That is why I am very confused by the fact that anyone is buying HIP shares above 0.79 cents. I realy can't wait for next week to see how this unfolds. I have never seen anything like this.  Good luck to all. 

[surveyor2582]

There are almost 390 million shares being held by investors at $1.68. The majority of these shares were purchased for more than $.89. Are you saying that we were all confused and caught up in the news release when we purchased the shares? Think again.

[scottyBoy8]

Explain why the same company is worth 5x more within 4 days with no news realeases at all or no new information provided what so ever.

[Asterix99]

OK. So why would anyone buy the shares above the merger price? Do you think someone will offer more? I am just trying to understand. 

[scottyBoy8]

Its just the market. When there is a crapload of people buying and nobody selling the share price goes up. Maybe aurora was buying maybe people that don't understand market caps we're buying, maybe hip fans we're buying due to the tragically hip. I really dont know but the shares are not worth 3.30$ with 0$ revenue dollars and a facility they can not afford to complete as it stands

[TrixBits]

THIS!

[scottyBoy8]

The most correct answer out of everybody. I dont see any downside in a hip/c.med deal the new company will probably shoot through the roof after defending off ACB if we are sucessful.

[TrixBits]

The comments changed from trolling to complete sentences on this forum today. Cool. So some of us got in at a peek, myself included.  The upward momentum made me thousands, to loose more than what i gained.  My fault. I am new to stock trading and what i learned from practicing on stock training trader apps in november - december did not help me for what i was about to learn this week.

[scottyBoy8]

You'll prob still make money if you vote green the sp will go up. You can vote any way you want. I imagine they will sweeten the deal with some cash when all is said and done to account for the stock price rising. Who knows its all a gamble at this point

[TrixBits]

Understood. So although the CMED november offer is still there, they may add incentives to HIP shareholders? I dont want to walk away from stock trading with a sour taste in my mouth.  These stories are more interesting than the jerry springer show, though i am in the red with many of my investments. Interesting how things turn up for the next few weeks, with the law suits, and sit down