256
One cannot help but ponder why then are insiders representing 38% of the vote of the mindset that the best way to move the company forward is through a takeover by ACB and from there ACB specifically and not another LP.
Shareholders of CMED are therefore left with choosing between paying a premium for shares of Newstrike Resources Ltd (CSE:HIP) that may prove rewarding in the future but requires patience and buy-in OR to accept an instant premium for their shares in the form of shares of ACB or sell at the current prices on the market for cash. The share price of HIP has done quite well over this time and especially since CMED and Up Cannabis (HIP’s LP) announced a definitive supply agreement. Another attempt at a poison pill to be struck down or two companies that need to carry on under the assumption that their own friendly merger will proceed on schedule?
On January 5th, ACB announced a 17.6% equity investment in The Green Organic Dutchmen (currently a private LP but with an IPO expected in Jan or Feb) with rights to increase that ownership above 50%. Clearly the astute stewardship of the TGOD ownership may not share CMED’s view of ACB and in fact may be more aligned with the CMED insiders that represent 38% ownership that has agreed to tend to ACB. An ACB that includes both CMED and, in time, a controlling interest in TGOD would be a formidable presence in the industry with best in class pharma grade cannabis, certified organic cannabis for that market (medical and recreational) as well as their own production. The international presence of this new company could be unrivaled unless others follow the M&A route – exactly what we have said since 2016 was coming to Canada. If you are wondering how the market is reacting to this hostile takeover look no further than calculating beta which is about 1.06 since the securities commissions ruled in favour of ACB with respect to CMED shareholders’ rights plan. A beta like that simply means the stocks are moving 1:1 - as if they were effectively one and the same.