WHY WOULD ASTRA AGREE TO A 8.5 FOR 1 Consolidation.? TRANSACTION DETAILS
The purchase price payable by Surge under the Transaction will be $160 million , comprised of: 1) the issuance of approximately 3.1746 Surge Shares for every issued and outstanding Astra Share ; and in addition, 2) the assumption of approximately $15 million of Astra net debt upon completion of the Transaction, before accounting for transaction costs.
Make no cense after the deal to give back 8.5 for 1 that would put Astra share price of SGY very high.