CXB bought insurance at a discount....When they took the 66 million share placment closing TODAY, it ensures that CXB will not loose anything if amore generous sutor comes into this deal.... With the break fee and any additional shares they pick up to means a windfall profit even if the deal falls through.
In fact this may be their plan, JMHO
Transaction details
Pursuant to the transaction, Marathon shareholders will receive 0.6164 of a Calibre common share for each Marathon common share held. The consideration implies a value of 84 cents per Marathon common share and gross transaction equity value consideration of $345-million on a fully diluted in-the-money basis. This represents a premium of 32 per cent based on spot and 61 per cent based on Calibre's and Marathon's 20-day VWAPs as at Nov. 10, 2023. Existing shareholders of Calibre and Marathon will own approximately 66 per cent and 34 per cent of the combined company, respectively. Marathon will also be entitled to nominate one member to the board of directors of Calibre.
In connection with the transaction, Calibre agreed to purchase 66,666,667 common shares of Marathon at 60 cents per share for gross proceeds of $40-million pursuant to the concurrent private placement, representing a 14.2-per-cent equity interest in Marathon on an issued and outstanding basis. Closing of the concurrent private placement is expected to be completed on Nov. 14, 2023, and is not contingent on closing of the transaction.