Supreme Cannabis Company Inc. (The) T.FIRE

FIRE.DB up 15% today

[Method]

The volume was low but its a good start. The faster the FIRE.DB moves up, the easier it will be for the equity to move up too. Lots of equity investors look to see where the debt is trading before they decide to make an investment. 

Recall the bonds will mature in Oct 2021 and at maturity if everything goes according to plan, an investor would get $100 for an investment of $28.90 along with about $9 in interest or a multiple on your investment of ~3.75x. 

Not as good as the equity according to opt and johnhale but I'm not a visionary like those fellows. Heck, I would be happy to make only 100% from here in a year but I'll play in the minors (debt) and let those gentlemen kick butt in the majors (equity).

[johnale]

For someone who is looking 14-18mths down the road - you sure are really concerned about the short term movement of the debenture and equity? right now from our bet ...  debenture up 3.9 from 25 - 15.6% Equity up .04 from .24 cents - 16.66%  with the added liquidity of the equity.  regardless - I don't care about day to day movements - it's an investment based on a

[Method]

The higher the equity and bond prices are now, the more likely the FIRE.DB will mature at par in 18 months.  As discussed before, I don't have your vision so I look for other signals. The higher the FIRE.DB, the higher odds the "market" is assuming they will mature at par without any issue. The higher the FIRE price, the easier it will be to raise equity (if they need it and I

[johnale]

I just mean the added liquidity may make it a more attractive investment for people who have a shorter investment time horizon - a few months or so.  - other investors will want this type of flexibility - which will give a premium to the equity.   

[Method]

It is generally not true that equity gets a premium because it's not as liquid as equity. In fact, the cost of equity is by definition higher than the cost of debt when determining a company's WACC. It just so happens in this case that there is no natural owner for these debentures  so they trade at a giant discount to the equity value which usually never happens.   I