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For an investor that believes this M&A will go through and believes the combined entity will be a force in the industry then the opportunity exists to either sell existing Aleafia shares to buy shares of Emblem or to invest directly in Emblem shares rather than Aleafia’s because of the premium that exists compared to buying shares in Aleafia alone – over 20% in some cases.
Deep Dive’s article on Arbitrage and near arbitrage that I wrote remains the industry benchmark and I invite you to read it because there is a dynamic google sheet that you can copy and use to identify arbitrage and near arbitrage opportunities – it gathers information from online sources in near real time (just a few minutes delayed).
Who will be the next to join the M&A dance? I think we will see more of the medium to smaller companies do so as well as some of the larger ones currently out of investor favour such as Aphria and CannTrust. What we cannot predict is how much longer this systemic downturn in the markets will continue. I think everyone knew that one person could not take the credit for the record gains that happened… but I do not think anyone could have guessed that one person could indeed appear to be at least partially responsible for unprecedent levels of global volatility, uncertainty and instability whether economically or politically.
Let’s hope the new year indeed embraces out with the old and in with the new.
Until next time … invest long and prosper and just like we did with beverages years ago and also how the USA will slowly remove the wall of prohibition … and as recently as last month predicting with pinpoint accuracy that Emblem appeared to ideal for investing in … we will continue to connect the dots so that you don’t have to and well ahead of the pack.