As far as I understand, CP1 holders will receive 1.3 shares in AC8 for each share held here, provided of course that the deal goes ahead on the agreed upon terms. This will happen irrespective of the share price at the time of the merger/acquisition given that fair value of both companies (at the time) was used to determine the proportional value of CP1 to AC8 based upon their market cap and future potential.
As others have mentioned, the discrepancy between the trading prices is likely due to uncertainty around the deal actually going through.
All med cann stocks have seen a big boost on the news around changing legislation and rightly so as they had been beaten into the ground as if there was not a growing multi-billion dollar industry waiting for the green light.
Take a look here at how many med cann businesses there are which have been granted 'major project status' by the Aus. Government which stand to create thousands of jobs and attract significant investment/export opportunities when we're trying to stave off recession. I count 6 out of 20 projects.
https://www.business.gov.au/Grants-and-Programs/Major-Project- I also believe we are expecting news around Cpat trials this quarter? If I was a gambling man I'd bet on some solid announcements from CP1 before March, in order both to capitalise on current momentum in the sector and reassure AC8 holder's they haven't been hard done by.
All IMO
CP1 Price at posting:
21.0¢ Sentiment: Hold Disclosure: Held
