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0.8377 – 0.6887 = 0.145. 0.15 / 0.6887 = 22%.
We are almost a full page into this case study without so much as a word on Aleafia. That is because one should understand the potential gain (in share count) by investing in EMC rather than ALEF at this time. Existing shareholders of Aleafia may want to consider selling their shares to buy EMC shares. We were the first to explain this opportunity that exists in many M&As back when Canopy was acquiring Mettrum. As such, if one concludes that they want Aeafia in their portfolio, maximizing the upside needs to be considered. Of course, until there is a deal there is no deal so always take that in to consideration when buying the shares of the target company. Also keep in mind as shareholders of Aleafia sell those shares that the share price could fall and their demand for EMC shares could result in increased pressure on EMC’s share price. Much like a short sell attack, it becomes self-fullfilling prophecy.
According to Aleafia’s website:
Aleafia Health brings Canadians medical cannabis care through nationwide clinics, world-class cultivation and distribution facilities, and innovative research. Experiential knowledge of medical cannabis therapy, a rapidly evolving science, helps ensure physicians make recommendations that have been proven effective through historical data, helping to avoid treatments based on trial and error. The company’s staff of trained educators provide learning sessions for new patients, providing ongoing consultation ensuring patients are matched with the most appropriate treatment.
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