RE:RE:RE:$72M finder's fee payable to CinvenTo recap, the shorts are contending that a $72M finder's would be payable for a 28M GBP pound transaction the company completed a few months ago. Repeat that a few times and please and then try to restate the below with a straight face. The fact that this would have been triggered and not disclosed would be outrageous. The fact that the Board would have approved such a finder's fee would be a complete derliction of their fiduciary duties. These nonsense conspiracy theories have to end. You are insulting the intelligence of most peole on this board with such statements. There is no question that the company is facing headwinds, although the extent of such headwinds are greatly exagerrated by the short and distort gang on this board. I also concede that management has screwed on a number of fronts, including grossly overpaying for the Covis portfolio and taking on too much debt as part of the Amco trasnaction. The fect remains, however, that this company is a cash-generation machine with projected free cashflow that far exceeds what they require to service their debt, Despite that, the company appears to be working on a transaction that will reduce debt and allay much of those concerns. That is why the stock was up almost 16% today and I expect the upward momentum to continue. If you are short cover and trigger your gains or cover and cut your losses becuase this baby is going only one way and it will be at rocket speed once a deal is announced.
smallshort wrote: Thanks you rad10. Sorry for your loses. Seems a lot of people got fooled by this bad Amco acquisition (bad for Concordia shareholders but great for Cinven). And to make matters worst, the previous large acquisition was just as bad with that massive surprise write off on significant portion of the portfolio just 18 months after acquisition.
As for the $72M finders fee, it's there in the official documents and discussed also in the MD&A so the risk is still there.
Since nothing official has been disclosed as to whether or not it was triggered. I understand you have confidence that it hasn't been but I hope you can understand, given all we know as facts today, that some of us don't give any "benefit of the doubt" to the CEO of this company.
The news, each month, keeps getting worst and worst. Promised are always high and delivery is always a failure, not by a little but by a lot. If this pattern continues, delivery on this additional "consideration" will also be bad.