Commercial Solutions Inc CSOSF

transaction break fee

[Gonzo2]

Am I reading this right?  IDG walks away from a transaction to takeover Commercial, but yet retains the right to a break fee to September, 2013?  And the board of Commercial has renegotiated this fee down to 435,000 dollars until March 2014.  What kind of stupid LOI was signed?  Now we know why Commercial isn't getting ahead.  Seems like the board of directors for Commercial is way over its head.  Unless I don't see something here, this is the most asinine thing I have ever heard of.  What a joke.

[Auzz98]

From the way I read the press release that is indeed the case and it sounds like the board is happy to pay the amount!!. Isn't CSA's lawyer also a board member? if I was board chairman I would be so embarrased by the this I would resign but I doubt from previous history we will see that.  So now CSA pays roughly $500k (based on last qtr, over a years profit) to have the right to go

[DTM5]

I laughed out loud when I read that PR.   Although IDG kills the deal, the break fee still applies, and CSA is obliged to pay?   Who do they have doing thier legal work?  I mean this is pretty basic stuff!   Very poorly exectuted.  Another costly blunder.

[Gonzo2]

And the transaction break fee was due to expire in September 2013, less than four months away.  Some brainiac decided to extend this date until March 2014, at a lower amount.  Doesn't it seem to others here, that a pretty severe stench is emanating from this latest piece of work?  What is going on here?  Did IDG pull a fast one on this board of directors, is there some sort

[Auzz98]

Well from what I see the legal counsel is also a board member. The lawyer gets paid to sit on the board and do all the legal work I wonder if the board reviewed the LOI before voting on it? I would think a first year law student would be able to see that the deal stunk.IDG sees an opportunity to make some quick cash while walking away. If this wasn't so funny you might suspect that something