Daseke Inc DSKE

Additional Amount?

[retiredcf]

So I guess this potential additional amount will depend on how they view the results below. Based on the highlights, it looks pretty good. GLTA

and an additional earnout of up to CAD $0.45 per Aveda common share (if any, the “Earnout”) contingent on Aveda achieving certain EBITDA targets (the “Transaction”). 


Generated Adjusted EBITDA1 of $3.6 million for the three months ended December 31, 2017. This amount of Adjusted EBITDA1 continues the strong performance the Company has experienced throughout fiscal 2017. Adjusted EBITDA1 in the fourth quarter of 2017 increased by $3.0 million  or almost 500% compared to $0.6 million in the fourth quarter of 2016;

[tadjames1]

Yes, and we don't even have to do anything. Even if we sell our shares today, we will still be on record for the payout. I think they could have got a better deal though.

[Carpenter72]

I don't think so...That's why people is whilling to pay 0,92$ for the potential 0,45 earnout...

[JohnnyTSX]

I dont think so. Shareholder at time of deal close makes more sense to me.

[skibum45]

I personally wouldn't sell in the low 90's.  Listening to the DSKE conference call, seems like they're confident re. AVE performance over the next year.  I'll hold until the "effective date" (sometime in June??).  Eventual payout should be closer to 1.35 (0.9+0.45).  Guessing share price will increase to reflect this as we get closer to June, so may be

[NickLaf]

  The date of the merger...If the transaction is approved by shareholders and all other approvals are received on a timely basis, is anticipated to close mid-June. The earnout (if any) will only be available to shareholders of record when the transaction closes. Not sure if I'll sell yet. 

[retiredcf]

Fully agree that it makes no sense to sell at this point and if you're a bit of a gambler, you might want to buy below $0.95.  You're guaranteed to get $0.90 with a potential 50% kicker in a couple of months. Not sure we'll get the full amount but we could easily add another $0.20 or so. If the SP moves close to $1.20, then selling might enter the picture but not before.  

[JohnnyTSX]

Agreed. Does anyone know if you have to convert your shares to the new company to participate in the upside part? Or can you cash out in June 2018 and still participate? Thx.

[retiredcf]

If I read this correctly,  you shouldn't have to do anything.  Whatever amount (from 0 to $0.45) they decide will be the "earnout" would then be added to $0.90 to form the final purchase price. GLTA and an additional earnout of up to CAD $0.45 per Aveda common share (if any, the “Earnout”) contingent on Aveda achieving certain EBITDA targets (the “Transaction”).&

[NickLaf]

Should clarify that I meant that im not sure wether ill elect cash (sell) or receive the fractional daseke shares. For your question, the agreement states that all shareholders on record as of the transaction date (sometime in june) regardless of their election (cash shares or mix) are eligible for the earnout.

[kijiji]

so with this kind of a deal this is still a good buy at this point with the bonus money being awarded to any shareholder until the June deal date!!

[NickLaf]

Earnout isnt guarnteed. you could get paid $0 but you'll have the optiont o sell for at least 0.90$ to Daseke. Stock is at .95 cent now so its up to u, is the upside of another .45 cents a share (but possibly zero extra) worth risking the 5 cent premium u could sell for now vs the 0.90 cents you're guaranteed? 

[retiredcf]

NickLaf - Just noticed that you joined SH this morning so I'm curious why you are sort of encouraging people to sell.  It's all about risk and reward, and in this case, at $0.95, the risk ($0.05) would seem to be worth the reward ($0.40). It all depends on how the results are viewed and as previously mentioned, they looked pretty good. GLTA Generated Adjusted EBITDA1 of $3.6

[Futureisbright]

Yep and Yep.....lol..... $1.00 +

[Futureisbright]

Yep.....

[JohnnyTSX]

Sell? This might be a no brainer to add. If I understand correctly, buying at this level is like a 2 month GIC at even money with up to 50% upside.