Iron Brdg Res Inc. OEXFF

RE:RE:RE:So now what?

[black4444]

The thing to do is wait a few days to see what the revised Takeover Circular says about the lockup agreements and break fees.
 
If there is a provision that provides the opportunity for the lockup signatories to tender to a higher offer from a third party, then that scenario remains a possibility.
 
Typically, there would be some kind of break fee paid to Velvet in the event the $.845 deal doesn’t close, depending on the circumstances. And that break fee could be an impediment to a higher offer from the third party.
 
So a higher offer is theoretically possible, but I personally would assign an extremely low probability.

Realistically you can sell now at $.83-.84, tender and get $.845 sometime in October, do nothing or dissent.
 
If you do nothing and Velvet receives more than 90% of the shares outstanding then your shares will be purchased from you automatically at $.845 pursuant to the Compulsory Acquisition provisions of the ABCA.
 
If you do nothing and Velvet doesn’t get more than 67% (though they can waive that requirement I believe) and less than 90% then you are stuck owning shares in an Iron Bridge controlled by Velvet. Probably an illiquid security with an uncertain (though not necessarily bad) future.
 
And lastly if you really feel strongly that $.845 isn’t fair value you can dissent, which is a legal procedure by which you can go to court and have a judge decide the value of your shares.
 
Essentially, you register your shares in your own name (not the street name), have your lawyer draw up the appropriate documents and file with the appropriate parties.
 
At this point you can call up Velvet and see if they will pay you a bit more for your shares, their incentive being to avoid a big legal hassle later on.
 
If they say no, you hire lawyers and valuators and commence battle.
 
My experience with this ranges from a higher offer resulting from the first conversation with the acquirer all the way to a four year battle that achieved a much higher offer + interest + about half our legal fees. And an ROI that wasn’t worth the effort and brain damage.
 
Those of you who are wondering about all the trading near/at/above the offer price, that is funds/individuals who might be betting on a higher offer, maybe a bit of simple arbitrage between the ask and the offer, and lastly funds/individuals that specialize in dissent actions.
 
GLTA.