BAT invested directly in OGI. I sold the $2.50 cash secured 2023 Leap puts.
With the cash infusion from the direct sale of stock to BAT there is minimal risk that the stock trades sub 85 cents.
Eight five cents would be the cost per share minus the put premium collected. and a secondary inveetment of the collected premium into GGN and BPT. As usual this is a two way trade. The cash collected went into BPT September puts and GGN common.
Please view the other two charts I posted for GGN and BPT details.
Of note I sold GGN yesterday for a 4 cent per share profit and the monthly distribution is 3 cents per share. The caveats with GGN and BPT investment with the put premiums collected are stated in the other two posts (SNDL and BPT).
wishing you prosperous trades and
all the best...
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I referred to British American Tobacco as BAT. that's the old name. The ADR is symbol BTI.
I assume that was a funny. Pot stock comments get a lot of those.
If not then BAT is the symbol for British American Tobacco.
BAT directly invested in OGI via a private seconndary stock offering. Critically the cash went directly to OGI and is placed on the balance sheet with no attendant liability as if it were a loan. BAT a large player has now invested in a relatively small player in this rapidly consolidating industry. This is a net positive for the outside minority shareholders who do not have access to management prior to making this seemingly synergistic investment. Is there a vertical for OGI products through the BAT sales channels? Likely the BAT reason for investing.
Now a dive into the reason to screen for direct investment.
Mr Icahn and two others invested in NAV and looked for a buyer of the whole company. VW invested directly in NAV rather than buying the entire company. The troubled company now had a large investor and potential buyer. The stock was at $12 and sprinted to the current $44 range.
A good tool is to constantly look for large companies buying shares directly from small or midcap public companies.
Navistar that is NAV not Net Asset Value... "I'm funny. I can be funny." Dr. Leo Marvin in the movie "What About Bob?" Is it wise to take pot stock comments too seriously?