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Re: A deleted message

Thursday, 12/08/2016 12:01:24 PM

Thursday, December 08, 2016 12:01:24 PM

Post# of 588
It sounds like your issue is more to do with the market valuation of MT than with the merger. Clearly MT was missing a piece of the puzzle on their own to have a market cap less than ACB and APH. This has been determined by the market, not CGC.

What do you think the future would look like if this deal doesn't go through? This is what I see:

-MT loses the $10MM break fee, weakening their cash position by 1/3 and ability to execute expansion plans and sending the SP to around $5.
-further cash raises will be required, but will be more difficult given their position, requiring a hefty discount for a bought deal... over 4% dilution just to raise $10MM to get the cash position back to where it was, but they would probably need more than 4X that to execute on expansion plans.
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