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Cannabis (Marijuana) Stocks

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Jul 17, 2015
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alex_d10 wrote: This post didn't age well ;)

At least we're not in crypto though :)
Other, enjoy of the last day of summer BBQ and beerSmiling Face With Sunglasses
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Jun 9, 2015
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Scarborough, ON
magmadragon wrote: Then that's a such a bizarre way to phrase it. Having "on or" there is what is throwing off the whole thing for me. Seems redundant based on your reading. If it was written as below, I would take it as you have explained.



Otherwise I read the original as on (sept 19, 2019), or prior to sept 19, 2019 at 4pm.




EDIT: You know what, if it was "and" it would have been clearest that sept 19, 2019 was the only possiblity.
It's either "on" x or "prior to" x
x= 4:00PM Sept 19, 2019

north american options, warrants and convertible debts can be exercised prior to expiry date
European ......exercise on expiry date

for greater certainty.........google it
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Nov 10, 2007
295 posts
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Jon Lai wrote: Yes I agree the verbiage can be clearer, this is just how warrants work, otherwise as you said, there is a clear arbitrage opportunity. In today’s day and age, it’s almost impossible for arbitrage opportunities to exist for retail investors due to algos, so if you see one, chances are you’re missing something.
Fair enough. Thanks for the explanation.
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Nov 10, 2007
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userID wrote: It's either "on" x or "prior to" x
x= 4:00PM Sept 19, 2019

north american options, warrants and convertible debts can be exercised prior to expiry date
European ......exercise on expiry date

for greater certainty.........google it
So you're saying it can be exercised early?
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Jul 11, 2011
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magmadragon wrote: So you're saying it can be exercised early?
You'd be silly to exercise here. The warrants have a .25 strike price and they are already WAAAY in the money. That .25 variant between the share and wt will stay tight. AUSA is NOT meant to be trading at >$3.00, it's literally a .20 stock

Take hip.wt for example. Share price is roughly .80, wt is .12, strike is 1.85. Exercise a warrant here, it'll cost you .12 + 1.85 = 1.97 So exercising wouldn't make any sense with the sp at .80, you'd be in quite the hole. But playing the warrants give you great leverage this far out from the exercise date. If hip sp goes to 1.00, warrants will go to .18 or so. So sp goes up 25%, warrant goes up 50%

If it were me and I really liked the company, sell the warrant now and buy the stock. Warrants can expire worthless in one year, stock won't. You're warrants gain zero leverage now that they're in the money. Only advantage to buying warrants here would be they're .25 cheaper than the stock, you could by more wts for $10k than you could stock. But that'd be bad investing

Anyways, that's a little jumbled and could explain better with more time. Bottom line, don't exercise AUSA here
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AUSA is goin to drop further..its a 20 cent stock.
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May 9, 2007
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Jon Lai wrote: You can't execute the warrant until the warrant date.
I acknowledge that I don’t know what I’m talking about, so I’ll just quote from a source.
The warrant certificate includes disclosures about the security's characteristics and the holder's rights or obligations. All warrants have a specified expiration date, which is the last day the rights of a warrant can be executed. Warrants are also classified by their exercise style. For example, an American warrant can be exercised anytime before or on the stated expiration date while a European warrant can be exercised only on the expiration date.
https://www.investopedia.com/trading/wa ... ment-tool/
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Jul 11, 2011
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oasis100 wrote: AUSA is goin to drop further..its a 20 cent stock.
That's why the best play would be to get out of the warrant now. It's crazy that they're worth $3.00. They should be .03, and will be .03 if the stock falls to .30

Anybody buying them here should just burn their money instead
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May 30, 2005
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I'm not aware there was a difference between American and European warrants. If this is the case, then how does one explain the arbitrage opportunity that was brought up?
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oasis100 wrote: AUSA is goin to drop further..its a 20 cent stock.
https://www.newcannabisventures.com/new ... ent-round/

Cannabis stocks are in a bull market, no doubt, but things are getting crazy! No, I am not talking about Tilray (NASDAQ: TLRY) trading to $236 today. Rather, the latest parabolic spike is in the first day of trading of Australis Capital (CSE: AUSA), a recent spin-off of Aurora Cannabis (TSX: ACB) (OTC: ACBFF). The company is pursuing cannabis opportunities in the U.S.

Aurora Cannabis announced the spin-off in June, and the the stock has a fully-diluted share-count of about 145 million shares according to the Filing Statement. It priced a private placement round at $0.20 recently, raising $17 million. The first trade this morning when it opened at 10 ET was at $10.00, or 50 times the deal price, giving it a market cap of C$1.45 billion. Thus far the company, which just commenced operations, has little more than the funds from its deal and to letters of intent.

Despite the big jump in price on the open, traders have continued to buy, apparently not cognizant of millions of warrants at $0.25 that were distributed to Aurora shareholders. The stock has pulled back as we publish, but it traded as high as 13 (data from stockwatch.com). The dollar volume is already in excess of $11 million.
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Snoop is great. Alot of people do dislike snoop also.
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lol saw the random AUS shares and sold it at a market order...got $14.50 for the shares and $8.50 for the warrants!
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Nov 10, 2007
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Jon Lai wrote: I'm not aware there was a difference between American and European warrants. If this is the case, then how does one explain the arbitrage opportunity that was brought up?
I mean it's a moot point now as the spread is 25c, but yeah I'd like to understand this better. Since the difference was quite large at one point, I figure that had to be a good arbitrage opportunity.

That said I have never dealt with warrants before so I don't know how long they take to exercise anyways. I know with Questrade I have to send in a special request for them to be exercised. How long it takes to receive the actual equities at that point, I have no idea.
hebsie wrote: You'd be silly to exercise here. The warrants have a .25 strike price and they are already WAAAY in the money. That .25 variant between the share and wt will stay tight. AUSA is NOT meant to be trading at >$3.00, it's literally a .20 stock

Take hip.wt for example. Share price is roughly .80, wt is .12, strike is 1.85. Exercise a warrant here, it'll cost you .12 + 1.85 = 1.97 So exercising wouldn't make any sense with the sp at .80, you'd be in quite the hole. But playing the warrants give you great leverage this far out from the exercise date. If hip sp goes to 1.00, warrants will go to .18 or so. So sp goes up 25%, warrant goes up 50%

If it were me and I really liked the company, sell the warrant now and buy the stock. Warrants can expire worthless in one year, stock won't. You're warrants gain zero leverage now that they're in the money. Only advantage to buying warrants here would be they're .25 cheaper than the stock, you could by more wts for $10k than you could stock. But that'd be bad investing

Anyways, that's a little jumbled and could explain better with more time. Bottom line, don't exercise AUSA here
Thanks for the detail. So if it's in the money why not exercise it now? Using your HIP example, no one in their right mind would buy that warrant. But in the AUSA case, since the spread has tightened, it's a bit of a wash between the two. But previously the spread was large and seemed like a decent arbitrage opportunity. As for the ones I received it will cost very little to exercise them, so if I'm holding the shares or the warrants, it doesn't really seem to matter.

Also how do I see the strike price for warrants in general?
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Dec 3, 2007
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I got $5500 ready to go. I know I should have jumped in way earlier, but if I had to choose today, how should I divide up my stock purchases?

Any help would be greatly appreciated. Here for the long term.
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Dec 4, 2007
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Good luck seeking for advice here. Everybody have their own opinion and point of view of the situation. No one is wrong and no one is right, everybody speculate until it hapen.

Today, i am going to open at a branch of td direct investment and going 33k in aurora, 33k in hexo and finaly 33k in canopy.

The only knowledge i have about stock is motley fool website and general news site. I started to read months ago, but just begin to understand little bit about it. So don't listen much about what i do.

At start i was interested in etf, but after reading there is some sort of management fees of 0.75%, its kinda expensive if somethings goes wrong.

Some suggest to invest in shopify, cause they think or know that will be a major player in selling online weed, without having to manage stock or other sort of fees. But at 200+$ per share... Its out of my league
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Jul 11, 2011
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magmadragon wrote: Thanks for the detail. So if it's in the money why not exercise it now? Using your HIP example, no one in their right mind would buy that warrant. But in the AUSA case, since the spread has tightened, it's a bit of a wash between the two. But previously the spread was large and seemed like a decent arbitrage opportunity. As for the ones I received it will cost very little to exercise them, so if I'm holding the shares or the warrants, it doesn't really seem to matter.

Also how do I see the strike price for warrants in general?
Two ways to find strike prices. Search newswire/google or SEDAR for the original BD prospectus. Or use --> Canadian Warrants

Regarding HIP, it's the opposite of what you think. If you think the SP is going up, now would be the time to buy actually because of the leverage in the warrant.

Try this article and see if it helps
Explaining HIP.WT.A And Why You Want To Buy The Warrants Over Stock

Also this BS calculator can help you determine fair-market-value ==> Black-Scholes Calculator
In this sector I usually use a volatility of 85% and set the interest rate at 1%

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