If the transaction closed today and the prices stayed static sure, but they're going to keep swinging up and down and eventually converge.JRGUINNESS wrote: ↑Jul 6th, 2018 10:57 amLEAF:
Under the terms of the Arrangement, MedReleaf shareholders will be entitled to receive 3.575 common shares of Aurora (the "Share Consideration") and $0.000001 in cash (the "Cash Consideration") in exchange for each MedReleaf common share held
LEAF = 30.32
ACB = 9.17
ACB = 9.17 X 3.575 = 32.78275
Am I missing something
isn't this like a guaranteed $2.5 ROI?
The better way to look at it is can you use LEAF to acquire ACB for a low price. Using your same numbers, 1 LEAF = buying ACB at $8.48, if you think the post-dilution value of ACB is worth more than this then its a good value.
I picked up some LEAF at $22.80 shortly after it was discounted ~10% from the acquisition announcement, thus locking in my ACB price at $6.38 ($22.80/3.575), to me it seemed dumb not to do this as ACB is worth more than $6.38 all day long, so basically just gotta ask yourself if you think ACB is worth the $8.48+ or whatever current price of LEAF is / 3.575