Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

Bullboard - Stock Discussion Forum Supreme Cannabis Company Inc. (The) T.FIRE

The Supreme Cannabis Co Inc is a Canada-based company engaged in the production and sale of medical and recreational cannabis. Its portfolio includes products that address recreational, medical, and wellness consumers. Its brands include BlissCo, Truverra, 7ACRES, Sugarleaf, and Hiway.

TSX:FIRE - Post Discussion

View:
Post by WealthBuilder99 on Apr 21, 2021 11:12am

Clarification

I noticed a lot of people seem confused about the deal, so just a quick post to clarify. Under the terms of the deal, Supreme shareholders will receive 0.01165872 Canopy shares per share of Supreme. This is "fixed" if you will, or the most important number to be aware of. Now Supreme will trade more or less in tandem with Canopy shares. IE. $33 x 0.01165872 = about $0.38. So in fact, one can actually buy Canopy via Supreme at a slight discount currently assuming the deal goes through.

In regards to warrants and debentures, the same conversion process should take place. Example: 10k Fire.WT warrants will convert into 116.6 Canopy warrants. The $0.23 exercise price will translate to $19.73 or thereabouts.

 

On another note, being long on Supreme since 2014, it seems a huge shame to sell to Canopy at this point in time. Supreme management obviously did not have the intent on maximizing shareholder value - shame on them. This is partly explained by there having been virtually no insider buying for some time. I am hoping we'll see a stronger bid come in. I've long thought Aphria seems like a likely acquierer, given their stated goal of "30% market share in the Canadian market" and their previous success from acquiring Broken Coast, one might think they'd aim to replicate this success by acquiring other leading premium brands.

Best of luck.

Comment by vulcan123456789 on Apr 21, 2021 11:19am
great post wealth.. it is exactly my take on everything cheers
Comment by Craiger02 on Apr 21, 2021 12:11pm
Great post! If had some extra $$ laying around, I would be buying a bunch more warrants. They seem to move very slowly behind the equity. For that conversion/strike price, there is ALOT of upside potential there
Comment by G1945V on Apr 21, 2021 1:02pm
What info is there on the warrants? TIA G1945V
Comment by Craiger02 on Apr 21, 2021 1:28pm
Hey G1945V... this was the email I received back from Craig in IR...   An information circular is being prepared that will explain details on the transaction. The Supreme warrants will be converted to Canopy warrants at the same ratio as the shares: 1 to 0.01165872. The strike price would follow the same proportions, but I don't have an actual figure yet. The dates will remain ...more  
Comment by G1945V on Apr 21, 2021 1:55pm
Thank you for that info.  I came on borad Superior Canapy (T.FIRE) very recent. Looking for excercise price and expiration dates for the share purchase warrants, T.FIRE.W & T.FIRE.WS. TIA G1945V
Comment by WealthBuilder99 on Apr 21, 2021 2:29pm
FIRE.WT are $0.23 exercise price and Jan 29, 2024 expiry date. Fire.WS are $0.40 exercise price. The first series of warrants (FIRE.WT) are an interesting play for sure, gives one a nice leverage effect on Canopy. At last check, if Canopy moved up 50%, Fire.WT would move up over 100%.  
Comment by vladdraq on Apr 21, 2021 2:58pm
the 19$,Jan 2023 strike call is 16.50$. you need roughly 860 warrants for i share,  ~ 13$, so you basically have a 20% discount and a huge year free time value if you buy the warrants. 
Comment by WealthBuilder99 on Apr 22, 2021 12:10pm
Can you explain where all these numbers are coming from? Thanks in advance.
The Market Update
{{currentVideo.title}} {{currentVideo.relativeTime}}
< Previous bulletin
Next bulletin >

At the Bell logo
A daily snapshot of everything
from market open to close.

{{currentVideo.companyName}}
{{currentVideo.intervieweeName}}{{currentVideo.intervieweeTitle}}
< Previous
Next >
Dealroom for high-potential pre-IPO opportunities