Rocky Mountain Liquor Inc V.RUM

Insider sale last week

[jcorobow]

That block trade was an insider selling $200k. 

Thoughts? they seemed to have had the buyer for that trade lined up already.

[Fansse]

How do you know this?

[jcorobow]

https://ceo.ca/api/sedi?symbol=RUM&amount=&transaction=&insider=

[waytoomuchred07]

The CEO sold 1.1 million shares. That's concerning. She must be Peter's daughter?

[Fansse]

The management owns 20% of the company before the transaction, why would they only sell 200k worth of shares? "After the Transaction the Acquiror and the Joint Actors together, directly and indirectly held owned and controlled 9,431,290 Common Shares, which represented on a fully diluted basis 19.86% of the issued and outstanding shares of the Issuer."  This is as of December 3

[SomeGainNoPain]

Consider that they may be on the brink of selling at a price soon to be accepted by a potential buyer. Now suppose that the stock price is appreciating too quickly, so quickly in fact that the price (soon to be) agreed would no longer be sufficient for the other stock holders to agree to the sale. For the buyer, there is a SP above which the deal aborts For the seller, there is a price bracket

[Fansse]

Makes sense. In this kind of situation, the upside from the current price would be quite limited? What's the maximum acquiring PT we can expect? 

[SomeGainNoPain]

Recently I saw a company (EXFO) returning private with a 60% premium over the 1 month average price. But who knows, does this reach 26 cents, or 30 cents, or 23 cents? Your guess is as good as mine. But I think above 30 cents is a stretch, and under 23 cents would be hard to justify. I am realistically thinking 25 cents. All these prices are still very cheap relative to where the price was a