Newstrike Brands Ltd NWKRF

Hip.wt Warrants

[Tucan12]

Ok I just want to be clear here.
I have 100,000 hip.wt which will be converted at0.06332 so I am looking at owning 6332 Hexo warrants. My question is at the time of the signed agreement I think is in Aug if all goes well, what price do I get the warrants at. Is it todays price or the price of the warrants in Aug. Say they are at $4.00. I would have approx $25000 in warrants??

[reefercat]

Your gonna get 6332 hexo warrants with a striking price just under 28$ and an expirey date in January of 2020. Good luck. This deal is worse for the .wt holders then anyone else. The A warrants at least have a chance of working out well.

[Tucan12]

Yes but I can sell them at anytime to take profit.

[reefercat]

You can sell them whenever you want. But there not gonna be at the current hexo warrant price. It's gonna be a separate warrant. And with that crazy striking price and an expirey date not that far off you'll be lucky to get .40. Sorry man.

[Peroksis]

Now they have sent this to me, regarding Hip.wt Hi,   The warrants will rollover into HEXO. Same expiry date, strike price and number of shares received would effectively transfer over at the same 0.06332 ratio as the common shares. So if you exercise your warrants post closing you would receive 0.06332 shares of HEXO for each share of HIP you would have received. The effective strike price

[Tucan12]

No I think you will get Hexo warrants for Hip.wt warrants. not shares. You will receive 6332 hexo warrants for 100,000 Hip warrants at what ever the price is for Hexo warrants. Thats the way I read it so far.

[reefercat]

Good luck man. Your living in a dream world. You will get hexo warrants. But they'll be hexo.wt.A and hexo.wt.b. you can't have the same warrant with different striking prices and expirey dates.

[Sunjam]

Which warrants are you talking about? The A warrants are all that matters and their expiry date will remain the same when converted to Hexo

[Goldy63]

Yah this expert (Not) is on the Sugr board spouting the same garbage while he claims he,s making a fortune flipping lol . Ah well . Garbage is garbage coming from certain posters yup . JMO. Wink . 

[reefercat]

Lol. Hey goldy. Try getting the info from IR. And calling someone garbage is rich coming from you. A guy who spasm other boards and lures people in to fill his asks and baghold for a few months for him. You fing dueshe.

[reefercat]

I'm talking about both warrants. The A's will have a striking price just under 16$ and an expirey date in June of 2023. They have a good chance of turning out well. The HIP.wt will have a striking price of just under 28$ and expire in January of 2020. So probably not good. 

[SKL6600]

I feel like HEXO wouldn’t mind us exercising all our warrants as well so we will see kf they try and get the share price humming. They said in the interview they will need $6 billion over the next few years for expanding. Will be interesting if we get HEXO warrants at their current price but our shares divided by .06332 or what.

[Tucan12]

Yes Skl6600 I think thats how it will go down.

[reefercat]

With striking prices of 28$ and 16$ I'm sure they won't mind if you exercise them. Lol. Look I'm not trying to be a d1ck. But you'd better be prepared for this very possible outcome. If you think there gonna give you a current hexo.wt that was trading at 2.50$ when they made the deal for 15 hip.wt's that were trading at .04 so worth a total of .60. I don't know what to tell

[Sunjam]

Have Did you look at the legalities regarding the transfer of warrants? And weren't you pumping the shyt out of warrants just yesterday? Head scratcher

[reefercat]

Read my posts once I found out what they were actually doing. Pretty sure I called it total bullsh@t.

[Tucan12]

Yes they will thtat's why the delution of 0.06632, same as the shares. If your idea holds true than do you think you will get a $8 hexo sahre for a hip share. Its the same thing.

[reefercat]

No it isn't. Multiply the hip sp buy 15. What do you get. 7.50. The price of a hexo share when the deal got made. The HIP sp has to increase by 350% just to hit the current striking price of 1.75. The hexo sp is well over the striking price of there warrants.

[Sunjam]

Check your math

[reefercat]

.50 × 15 = 7.50 (hexo sp) when deal happened. .50 × 3.5(350%) = 1.75 (striking price of HIP.WT) Simple math. Not sure of your issue.

[Sunjam]

You're not sure about a few things. It's a simple transfer of warrants at a set price. This has nothing to do with the share price..

[silkroad007]

reefercat is correct and this example was just a moment in time whenteh deal was made.  Simple example with round numbers for simplicity. At the end of the day its the ratio that was set. 0.06332. or inversley 15.79.  Price does not matter as the intrisic value and % remain the same.  Its all flow through and normalized.   

[silkroad007]

Warrants get transfered just the same.  Economics remain exactly the same and for my money, HEXO can achieve the strike price better than HIP so essentially it makes the warrants people were ALREADY INVESTED IN more atrractive.  Its all normalized and fundamentally whole so if poeple were fine investing in HIP warrants before it makes no difference now.   You will get HIP.w or

[Tucan12]

Hey Silkroad Thanks this makes sense. So help me out. With 100,000 Hip.wt warrants how many new Hexo warrants should I expect to have and what will be the price 5,10 cents. I am assuming strike price $28 Feb 2020. Am I correct. Thx

[silkroad007]

100,000 HIP.WT x 0.025 = $2500 100,000 HIP.WT x 0.06332 = 6332 HEXO.WT.A 0.025 HIP.WT x 15.79 = 0.395 HEXO.WT.A 6332 HEXO.WT.A x 0.395 = $2500 HIP.V (0.50) x 3.5 = $1.75 Strike HEXO.T (0.5/0.6332 = $7.90) x 3.5 = $27.65 Strike Same math, same %, same same same.  Who do you trust more to get the same strike price, HEXO management or HIP management.  My money is on HEXO team.

[Tucan12]

Hey Silkroad Ok I get it. Question: If our warrants goes up in the time before the deal is signed in Aug do the value of the warrants go up in Hexo terms.  For example if hip.wt goes to 4 cents then we would get a little moe Hexo warrants. But all of this does not start until the deal is signed?? I guess this is where I get confused.  Nothing happens until the deal is signed. What if

[Jack4000]

This post has been removed in accordance with Community Policy

[Tucan12]

Ok looks like 50cents is that what I am seeing. more or less 6332 warrants at .50 cents $3000.  But this takes affect only when the deal is signed then we have what 4 months for this too go up before they expire, correct. Man they will have to move fast or this is dead money.

[Jack4000]

This post has been removed in accordance with Community Policy

[Tucan12]

ok but i still am not sure. What needs too rise hip warrant or hexo price to get a better rate or is this stuck at 40cents. final answer or can this go up alot more. I am not getting the answer. Yes 6332 warrants at 40cents locked in now how does it move higher. Does it depend on hexo sp price. thats where i get lost. Please explain. Will we make some good cash on this I am not looking to exercise

[Jack4000]

This post has been removed in accordance with Community Policy

[flyboy27]

you get 1 new for 15.78 old  . If originals wt goes back to .08  the conversion stays the same.  people are scared now and throwing money away!!   the day the deal was released  HIP was .45c   they put the value of HIP at .47c  according to hexo price $7.50  apply the conversion. Original WT .045 on that day.  so not .025 or .03cents. HIP shares .47

[Jack4000]

This post has been removed in accordance with Community Policy

[JJECYYZ]

HIP SP already have to triple or double (depending on your warrant) now even if there was no deal so we can get some movement on our warrants. The percentage increase required of each Either HIP or HEXO to reach the strike price will be about the same when the deal is done. The math and mechanics will all work out... You will still own hip.wt and or hip.wt.a. They will adjust the trading price at

[silkroad007]

Exactly Flyboy Basically with HEXO going up and the HIP warrants going down the conversion arbirtage is widening.  If HEXO is above 7.50 the HIP warrants should be above 0.16 and 0.045 respectively. The actual stock is more inline with the ratio but the warrants have diverged and I can only assume due to people not understanding anythinhg.  Warrants should be worth .18 and .05 just on

[Jack4000]

This post has been removed in accordance with Community Policy

[flyboy27]

---At a glance it doesnt look great, but  think about the exposure for the little HIP warrants an the NYSE.. and Hexo starts to look like Cronos  $15- 18  $20.  the big players in the sector are moving.  Hexo is under value to its peers,....lots to consider  

[reefercat]

The A warrants are going to convert to hexo warrants with a striking price just under 16$ and an expirey date in June of 2023. So obviously they'll be worth a lot more.