Overpaid for VitalitySo Livewell effectively paid $685 million for Vitality which currently has $20 million US in raw hemp inventory and $3 million in extraction facilities and debt o/s. WTF?
“Following the closing of this transaction, Vitality shareholders will own 85% of the total fully diluted outstanding and issued common shares of LiveWell post-closing, with potentially an additional 5% subject to achieving a specified milestone.”
"Following their review, the independent third party advised the Independent Committee that it was unable to provide a fairness opinion for the Proposed Transaction. In the absence of a fairness opinion the Independent Committee did not provide the LiveWell Board with any recommendation as to whether the Proposed Transaction was in the best interest of LiveWell."
“Management and the Issuer initially ascribed a value to the total consideration for the Vitality Combination of approximately $685 million, or $11.10 per share of LiveWell Canada, based on the share exchange ratio and the closing price of LiveWell Canada on November 30, 2018 (giving effect to the 15 to 1 share consolidation), the last trading day prior to the announcement of the Vitality Combination.”