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CMED shareholders are faced with the unenviable task of loyalty to the company that they are part owners of even if that means swallowing a poison pill in the form of paying what many are referring to as a premium for HIP OR receiving a premium for their CMED shares and benefiting from the potential synergies that a merger with Aurora brings. Therefore the cost to CMED shareholders is not only the premium being paid for HIP but also the lost premium being paid to them by ACB – much like starting at zeo and therefore the difference between +5 and -5 is 10.
The rationale investor, whether institutional or retail, would likley opt to tender to ACB and especially in the light of the recent overheating of the market – lock those profits in now!
Will a White Knight appear? Will CMED shareholders vote to accept one or the other or neither? In what is seemingly a never ending game of chess, what is the next move on the board?
One thing is for certain, whether you are a shareholder of any one, two, or three of these companies or not – this will be a very interesting watershed event for the industry because for the first time, main stream media is taking note of the M&A activity. It is signally a maturing of the Canadian industry.
It will also be interesting to see how the paid promoters address their own audience and followers. One would assume if they are paid by any of these three companies that their spin will reflect their client’s position and as I referenced in my article this month, they are not always forthcoming to devulge their paid relationship with their client.
For clear information on this transaction use main stream media, true analyst reports, company ciculars and filings, CannaInvestor Magazine, and so forth and if you want to know each company’s position on these two separate transactions then seek out their official news releases. Get your information from the actual source and not from a paid promoter. All company filings appear on SEDAR.