27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
Canopy Growth Corporation (TSX:WEED) (NASDAQ:CGC) is poised to merge with The Supreme Cannabis Company, Inc. (TSX:FIRE) (OTCQX:SPRWF).
The Canadian cannabis giant said Thursday that it agreed to acquire Supreme Cannabis' issued and outstanding common shares for about CA$435 million ($345.7 million).
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
The deal follows Canopy Growth's purchase last week of cannabis brand Ace Valley.
The Canopy-Supreme Transaction Details: Under the terms of the agreement, each Supreme Cannabis share is worth 0.01165872 of a Canopy common share and $0.0001 in cash.
Apart from shareholder and court approvals, under the Canada Business Corporations Act, the transaction is also subject to TSX approval and approval under the Competition Act.
In addition, Supreme Cannabis shareholders will receive a 66% premium per share calculated using Supreme Cannabis' and Canopy's Wednesday, April 7 closing prices on the Toronto Stock Exchange.
Cassels Brock & Blackwell LLP agreed to advise Canopy on the deal.
FREE REPORT: How To Learn Options Trading Fast
In this special report, you will learn the four best strategies for trading options, how to stay safe as a complete beginner, a 411% trade case study, PLUS how to access two new potential winning options trades starting today.Claim Your Free Report Here.
Why It Matters: The acquisition will boost Canopy's brand portfolio by bringing the 7ACRES and 7ACRES Craft Collective brands under its umbrella.
It will also strengthen its cultivation capacities through Supreme Cannabis' hybrid-greenhouse at Kincardine, Ontario, Canopy said.
Supreme Cannabis shareholders expect to benefit from Canopy's sales and distribution channels and research and development capacities.
Moreover, Canopy's U.S. CBD business will enhance expansion to the U.S. cannabis market.
"Combining Supreme Cannabis with Canopy — a Canadian market leader with exposure to the United States — presents a significant value creation opportunity for both companies. We look forward to working with Canopy to complete this transaction," Beena Goldenberg, president and CEO of Supreme Cannabis, said in a statement.
What's Next: Canopy said it expects to achieve potential cost synergies of roughly CA$30 million within two years following the closing of the acquisition.
"As we continue to expand our leading brand portfolio, we're excited to reach more consumers through Supreme's premium brands and high-quality products, further solidifying Canopy's market leadership," said Canopy Growth CEO David Klein.
CGC, SPRWF Price Action: Canopy Growth shares were down 2.3% at $29.25 at last check. Supreme Cannabis shares were up 55% at 32 cents.
Photo by Ryan Lange on Unsplash.
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.