Anything is possible. If the price is right I'd rather be bought out by them then a big Pharma, but frankly I'd rather they bought in.
As I see it, GWPH is a few years ahead of OWCP in terms of having an FDA approved drug in stores, but on the other hand, OWCP may be selling cannabis based products in cannabis stores sooner.
GWPH has far fewer shares outstanding, so they could easily dilute to either purchase shares, or exchange shares of OWCP for GWPH, the question would be how many shares of OWCP for one share of GWPH. I believe they would be wise to buy in, pay perhaps $5 a share for 30% of OWCP's shares, half of which are new, and half of which are tindered by shareholders. That would value the company at nearly $1 billion and both companies could be dramatically stronger in such an arrangement.
If big Pharma were to purchase OWCP, I wouldn't want to take shares in whatever company it was because I don't believe that any big Pharma can grow at the rate that cannabis based companies can, so I would take the money. I'd have to think it over should the offer come from GWPH. I don't believe they could grow at the same rate I believe OWCP could, but I do think they can do far better than any big Pharma. I'm frankly uncertain what I would do, but before getting excited about it, I would like to see their offer.
I really believe if something was in the offing, the company making the offer would want OWCP's dramatically higher. Why? Because I don't believe management would consider anything substantially under $1 billion and a company who made that high an offer with today's prices would be chastised by their own shareholders. A billion dollar offer would be reasonable if the share price was in the half billion range. If this were the case, actions would be taken that elevated OWCP to at least the $3 share price before any offer was announced.
Of course I could be wrong, but I believe that shareholders would reject an offer of a couple bucks, but such an offering would almost immediately drive the share price that high, or higher.
I frankly don't believe that any offer would come in before at least the outcome of one, and perhaps a couple of Phase 1 Trial has been received. As long as no real safety problems were noted in the trials, I believe the stock price should be up considerably, but the risk of a problem with one or more of the company's products would greatly be diminished. Of course efficacy trials should bring even more, but the more that's known about drugs OWCP is developing, the higher the price of a buyout, or a partnership for that matter.
Gary
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