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Re: Goodbuddy4863 post# 452

Thursday, 12/08/2016 6:28:50 PM

Thursday, December 08, 2016 6:28:50 PM

Post# of 588
Only look at how many shares of MT you own and for each of those shares you get 0.7132 CGC shares.

If you had 1000 MT shares you will have 7132 CGC shares after deal closes. 8.42 means nothing.

As long as you do the 1:0.7132 Ratio you won't get confused.

Obviously the cheaper MT is now the bigger the discount on your CGC shares upon conversion.

Right now if CGC is $10/share then fair market value of MT would be 7.132/share. So you are getting a discount by buying MT. Discount comes due to the possibility of the deal falling through. This time where there is a spread like this is known as arbitrage.


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