GTEC Holdings Was Just Acquired – This is How You Can Take Advantage of it

Palisade Research November 16, 2018
Category: Research

Well, that was fast. . .

GTEC Holdings Ltd (TSX-V: GTEC) just announced that they were acquired (you can read our latest piece covering GTEC if you haven’t yet here)

Invictus MD Strategies Corp. (TSX-V:GENE) will acquire GTEC Holdings for $100 million in an all-share transaction. Meaning GTEC shareholders will get their shares replaced with a number of GENE shares instead.

GTEC shares popped on the news – but there is still an arbitrage opportunity.

The company has 88.6 million shares outstanding and a current share price of C$0.86. This gives GTEC a market cap of C$76.2 million, still leaving a 30% upside.

Regardless, we will be holding onto our shares of GENE – which is now Western Canada’s largest indoor vertically integrated cannabis companies.

Highlights of the newly formed company include: 400,000 square feet of indoor cultivation space that spans across British Columbia, Alberta and Ontario. A genetic portfolio of over 80 strains. 30-plus retail stores. Two purpose-built state-of-the-art extraction labs. An analytical testing lab.

And – most importantly – one of the best management teams in the marijuana space.

This deal is going through – we may look to take advantage of the cheap shares to build our position in GTEC – and subsequently in GENE.

 

Palisade Global Investments Limited holds shares of GTEC Holdings. We receive either monetary or securities compensation for our services. We stand to benefit from any volume this write-up may generate. The information contained in such write-ups is not intended as individual investment advice and is not designed to meet your personal financial situation. Information contained in this report’s from sources we believe to be reliable, but its accuracy cannot be guaranteed. The opinions expressed in this report are those of Palisade Global Investments and are subject to change without notice. The information in this report may become outdated and there is no obligation to update any such information. Do your own due diligence.

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