RE:RE:RE:RE:Incompetent CEOLayth1990 wrote: Do you know why they will do it before phase 3. Remember my words, the deal will be high and they will load tons of shares due to ate low sp. if they do it after the ate sp will be high. Dan and wallace are highest holders at ate holding.
not to mention the buy volume before nuance deal. Leaked news ? Or more like dan and wallce family are buying and dumped after! I have zero trust in those 2 anymore. Everything is excuted for their own good
You might be a bit unclear as to how amalgamation will occur. We'll dilute approximately 15% (could be a slightly higher or lower depending on negotiations) to Holdings.
This dilution will be independent of what the share price of ATE is. Whether the share price is $4 or $8 or whether it's $15, Holdings will get about 15% of the amalgamated company. There's no need for anyone to manipulate the share price lower, Holdings is getting approximately 15%.
This will be offset by an increase of 15% to our royalties (profits). Amalgamation should be a neutral event. We keep ALL of our 85% royalties OR we get 85% of our company but get ALL of the royalties.
The lower the share price goes, does not equate to Antibe giving more shares (dilution) to Holdings. Say you value the entire drug portfolio of Antibe to be worth $2 billion canadian. To buy that 15% from Holdings we could give them $300 million (if we had that cash in our bank accounts), a fair deal. We don't have that cash, we are not going to give Holdings $300 million worth of shares (currently at $4.66 would be 64 million shares and fully diluted we're at 56 million). We are not giving Holdings 64 / (56+64) = 53% of the amalgamated company for only 15% of the royalties.
You can be upset at the share price, just realize that a lower share price does not mean we're giving away more shares in dilution. We're pretty much giving away around 15% of the current market cap, not 15% of what the fair value of the market cap should be.
Think of it in a set number of actual shares, we'll be giving Holdings around 10 million shares (10 / (56+10) = 15%) no matter what the share price is.
We're negotiating whether the value of the 15% royalties should really be discounted to say 12% = 7.63 million shares ( 7.63 / (56+7.63) = 12%), or whether the value of those roaylties should be say 18% = 12.3 million shares (12.3 / (56+12.3) = 18%).