What is ParentCo Cash / Share? The problem of guaranteed dilution

by | Jan 16, 2022 | Company Analysis, Extract

As a friendly reminder that per page 35 of the September 30, 2021 report, 33 million ParentCo shares will unlock on January 28, 2022.

UPDATE on Jan 28, 2021, the management voluntarily extended the lock-up by one year, but this lockup expires if any US plant-touching company uplists to the NASDAQ or NYSE. The rest of the article is still relevant.

As the stock sits at $1.16, and with $207 million in cash and a reported 97 million shares outstanding, it appears the stock is trading below cash of $2.13 per share, right? And it has a buyback program, so this would be a time to unleash it?

Well, it’s not so simple, since there are a lot of fixed dollar commitments payable in common shares.

Premium Members and Extract Members can read the true shares outstanding at The Parent Co (GRAMF) below.