RE:RE:RE:Just One Nagging Questioncaretired1 wrote: I think the SEC 10Q from Feb 5 says that CGC will own no more than 90% of CUSA after all is said and done. it may turn out they own less if shareholders exchange their CGC shares for CUSA shares, but I think that makes that CGC shareholder indifferent to your % of CUSA, but you may give up what you had in CGC - IMO, DYODD. Like if you own 100 CGC and exchange them for 100 CUSA, you probably dont have any upside in CGC anymore because you dont own it, but you own shares in CUSA directly instead of a piece of of it through CGC. IMO
That is in line with what I see, that said, it would make sense CUSA is very much separate from CGC and would be shielded from any bankruptcy proceedings filed by CGC. By moving into CUSA you forego the upside potential of CGC shares but at the same time are shielded from the downside. Where this gets confusing is in the options between the 2 companies if/when Constellation decides to exchange shares back into CGC. It looks like Constellation has the option to move back into CGC shares, or not, and CGC holders that did not opt into CUSA during the designated period will not have any further options with regards to CUSA. What options will CUSA shareholders have in the future regarding exchanging back into CGC? I still say this looks like an exit strategy retaining the best parts of the business should CGC fail to meet Constellations expectations. I think they are demonstrating proper disclosures by allowing ample time to shareholders to evaluate the risk and options, but this structure is very complicated, so yes, definately DYODD!.