Scrip-for-Scrip acquisition preserving AC8 cash balance !

there is many post about the value of the acquisition and how it will leave AC8 with empty pockets , this is not correct , AC8 picked Scrip-for-Scrip acquisition style which mean AC8 wont pay Actual $ but other wise an equal shares Value ", When a company launches a takeover bid by buying shares in the market, they offer money in return for shares. If a company launches an off -market takeover bid, they don’t always offer cash in return for shares – they can either offer money or scrip (shares), or a combination of these , AC8 will Offer shares !

as per the announcement :-
The terms of the Scheme provide that CannPal shareholders will be offered 1.3 new fully paid ordinary shares in AusCann for every fully paid ordinary share in CannPal (Offer), valuing each CannPal share at $0.184 per share and CannPal at approximately $17.5 million on a fully diluted
basis1

but the main Question how many of those will sell directly into the market ?

if this went as per usual the TOP Holder wont be able to sell directly into the market ( due potential escrow ) or due long term gains as a core believers in the business , which mean AC8 will face a pressure of 30MIL shares into the market if all other holders sold in day one !




Again will it be the case ? let's check the close price for CP1 :-

from the volume data , we can see that 60Mil got the shares above 19C , which mean if they are still holding selling into AC8 wont add any gains to them and those if they are after writing of the investment they would already do that on CP1 , and we can see around 16MIL between 15.5C-18C i would assume that those are day traders , so the selling pressure will come from the 20MIL that bought under 15C ( specially the 10 MIl from 2020 )





I think , if there is no selling from TOP20 after the merger , we wont see a major Drop in the Price in contrast we might see buying pressure !

Good luck to all .