Post by
15Stanmore on Feb 03, 2021 3:05pm
Is this one all sewn up?
Based on today's news release, the insiders have sufficient votes lined up to meet the 66.6% overall shareholder requirement. They then have to get 50.01% of the minority shareholders who will be bought out by the deal. Apparently they already have 51% of this shareholder group signed up to approve being bought out at $0.23. If this is the case, the AGM and shareholder meeting in March is simply a formality they must undertake and the deal will close in April.
While we do not yet have access to the detailed offer documents, it looks like our insiders will use the resources of the Company they are taking over to finance, in part, the $7 million they need to accomplish the deal. This is in effect a leveraged buyout, which makes we think there is another deal waiting around the corner after the minority shareholders have been removed at $0.23 per share.
This is not how I expected to be treated as a committed shareholder.