Nice post. Some good points raised. The proposed name change to...

Nice post. Some good points raised.

The proposed name change to 'European Cannabis Corporation' leads me to believe that HAPA is the entire investment here and so the resulting MC post acquisition of approx $39m represents the agreed value between parties. It's possible that the agreed value was negotiated well below market value in order to create a mutually beneficial outcome whereby HAPA gain access to 1PG's cash reserves whilst 1PG protect existing shareholders by minimising dilution and escrowing the 90m shares for 3 years. Either way, if the share price goes up, everyone benefits.

Take a look at AC8 an CAN as examples of how the market is valuing MM stocks.

Neither company generates revenue however AC8 has a MC of $457m whilst CAN is $408m. AC8 has $12.4m cash whilst CAN has $66m. AC8 has a similar number of SOI to what 1PG will have post-acquisition. Now obviously the stories are vastly different but it does show that the market is currently placing an enormous premium on quality pot stocks. We all know that could easily change in the blink of an eye but at least for now it gives us a point of reference.

Upon relisting, it's possible that stale holders will exit, however I don't think anyone is making money selling at 16.5c??? Given the new direction 1PG is taking, you'd have to expect some near-term upside is likely even if HAPA turns out to be a dud.