Newstrike Brands Ltd NWKRF

Do not understand why anyone would buy shares at this point

[Underwhelmed]

Deal with CMED is pretty much done. News release today by a huge stakeholder saying they support the deal. What does that mean? your share value will be reduced dramatically. 
There are people here posting "LOL don’t worry HIP shares will go up to $3 after the deal bro"

This is just blatant misinformation. They are saying this praying that the stock goes up to a share price so they can recoup losses. This is an acquisition, all your HIP shares will be converted to CMED at the agreed ratio  (I know it was 33 for every 1,0000). There will be no HIP.V listing anymore. 

The real losers are those who bought at that $3 high last week. I feel for you guys, you will just have to now hold on to your stocks and ride out CMED. This was a board of directors who had majority shares that wanted to sell no matter what, it’s the nature of any resource/mineral small cap company.

[Demian72]

Can you please reference to that "news release today" about the huge share holdre supporting the deal? thank you. Besides, I totaly agree with what you say in essence. 

[Underwhelmed]

My apologies, it was from Janurary 12 TORONTO — Newstrike Resources Ltd. says the Tragically Hip are backing the company's deal to be acquired by CanniMed Therapeutics Inc. The band is a creative partner and shareholder in Newstrike, the company says.   According to a report in the Globe and Mail, the Hip own a 5.4-per-cent stake in Newstrike. Even with a steep drop in

[Demian72]

A small clarification please: Are you basing your opinion on the fact the deal is almost done solely on the fact that the group has publically supported it? Are you suggesting that the bands inclination will be sufficient to sway all the major CMED shareholders towards approving the deal?

[Underwhelmed]

I am basing my fact that 58% of the shares are held by 8 listed individuals, including Jay Wilgar and Kevin Epp. The board does not care about running a LP cannabis company. CMED is buying the company to have an advantage in the dried cannabis market for recreational purposes, that is HIP only true value and the facilities they have (only one is somewhat operational) There is no way the vote no

[londonsate]

But remeber you need CMED share holders' YES, it won't happen !

[Demian72]

Thank you for your detailed reply. I would agree with you if the outcome of the deal was hinging only on the desire of HIP shareholders. However, for the deal to be approved it requires CMES's major shareholders to support it. The outcome of which, I am sure you would agree, is far from obvious to be refered to as "the deal is almost done". Are you getting my point?

[Underwhelmed]

Fair enough, but lets not forget CMED is 12% owned by Golden Opportunities Fund Inc who supports the deal as well as the board of directors, who combined own another 32%.  I do not think CMED would publically support this bid unless it knew it had the majority support. They know they have to keep ACB off their backs from a hostile takeover attempt 

[Demian72]

perhapse...to me the big writing on the wall that suggests the chair is shaking underneath Mr Zettle was his resolution to cut off his nose to spite his face when he went after his shareholders. Do you think he would do anything as obviously stupid as that (ruining his business reputation totally in vein as the case will very likely not even be served based on total absurdness) knowing he had good

[DarTheStar]

Golden Opportunities Fund (17.33) are part of the lock-up agreement with Aurora Cannabis that are required to vote against the Newstrike acquisition. 

[londonsate]

SO it is 12% NO

[Underwhelmed]

Yes, sorry my mistake. CMED is suing them

[KingMidasAu]

Yeah but they need 66&2/3% to vote yes as per merger rules. ACB share lock up at 38% + 3%-4% share ownership from purchases puts em up to 41-42%. Enough to block. They also went to court to argue the $9.5 mil payment in the event of a take over and lost. They then continued to pursure them hard so they are content with the payout. HIP will be standalone and get some money for expansion. win

[IMB51479]

ITS NOT UP TO HIP SHAREHOLDERS! CMED SHAREHOLDERS HAVE THE FINAL SAY

[Jonzeeeee]

Why would HIP accept such a shitty deal when the stock was doing fairly well?