ACB with CMED
We have discussed this merger for months as it transitioned from a hostile takeover into a friendly merger. We were there at the onset to discuss the poison pills enacted by CMED and to also discuss how at least one certain paid promoter slanted the story. Therefore, we will not be spending a lot of time on this merger here and now.
Owners of CMED shares have three options for each share of CMED owned:
(a) 3.40 common shares ("Aurora Shares") of Aurora (the "Share Alternative");
(b) $43.00 in cash (subject to proration); (the "Cash Alternative");
or
(c) any combination thereof (subject to proration of the cash portion), (the "Share and Cash Alternative").
I directly contacted a leading Canadian brokerage and the default is (a) for CMED shareholders that do not make a former declaration of which of these three options they want.
We discussed the opportunity that is there for existing ACB shareholders because with no new money and minimal effort they could increase their shares in ACB. How? By selling their shares of ACB and using the proceeds to buy shares in CMED. Warrant holders of ACB had the ultimate arbitrage opportunity due to the low strike price compared to the ACB share price. Here are a few examples.
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