281
because of the $10 fee to buy shares in APH and at $13.89 that is 108 shares of APH for a total of 1,003 shares in APH. Again, a lot of work and stress for 3 shares. But did you see the trap in this math that I have seen far too many Retail Investors fall in to? They assume the share price of APH will be $13.89 when the deal closes. It does not take too much APH share price appreciation for the exercise to be underwater.
When the share price spread does not instantly yield a greater number of APH shares on the conversion back, there is a risk that the cash component will not be sufficient enough to make the exercise worthwhile. In fact, once the share price of APH is above $14.34 in the above example the retail investor is left with less than 1000 shares. It is the timing that many fail to factor in. The cash payout will be weeks (maybe months) after they sold their APH shares and bought NUU shares with the proceeds. Perhaps some are expecting an overall bearish period at least until the time of the cash payout pus the dilution affecting the share price of APH. There are those on boards and in social media claiming it is a no brainer and to convert because some did not realize that the cash component was reduced from $1 to $0.60 per share.
This is YOUR money. This is YOUR portfolio. Always be sure your sources are correct and that the “math” works.
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Aphria More Than Triples Production Capacity with Health Canada Approval for Part III Expansion
Mar 13th 2018
@Louis. Kyron