Question re share structure
"Pursuant to the terms of the Agreement, First Majestic intends to acquire all of the issued and outstanding common shares of FSR on the basis of 1.00 common share of the Company for every 2.00 common shares of FSR. Shareholders of FSR may elect to receive either (i) one common share of First Majestic for every 2 common shares of FSR., which represents a 5.43% premium over the 10 day trading average of the shares of FSR, which closed at $2.38 on June 5, 2006, or (ii) cash compensation for their FSR shares on the same basis as its major shareholder who recently sold 24,649,200 shares to the Company. More specifically, any shareholder not wishing to receive shares of First Majestic in exchange for their FSR shares may elect to receive cash consideration of $2.165 per share payable on the basis of 50% upon completion of the Merger and the balance payable in two equal installments over two years, with interest payable quarterly at 6.0 % per annum on the unpaid balance."
I realize that the majority shareholder has already tendered their shares for cash. Given that the shares of FR are now under $3, is it fair to say that all FSR shareholders are much better off taking the cash option? Has anyone contacted the co. to see what the share structure of FR is going to look like in order to fund its cash and share offer to a) acquire FSR b) fund any other delayed payment obligations pursuant to other acquisitions?