AH Sale, then dividend/share-buy-back
I understand that some shareholders want to vote for the sale of Animal Health because they think they will then get some of their money back through a special dividend or share buy-back.
This is magical thinking on their part, because McRae in all his press releases has said the proceeds will be used to pay down debt and fund the Urocidin clinical trial. Mr. Rae also confirmed this use of proceeds in his sworn deposition and testimony under pre-trial cross-examination. That is why the judge repeated this in his written judgement. In other words, no dividend and no buy-back.
One possibility is some shareholders have a side deal with McRae to vote for him in return for buying back their shares, but not my shares and not yours. That would require less money, leaving lots of money to fund the Urocidin clinical trial. Maybe if Bioniche uses lots of expensive lawyers, they can figure out how to make this happen legally.
However, we as shareholders could make this "return the money" concept happen for everyone. All we would have to do is add a proposition to the AGM ballot to be voted on which says: "In the event of approval of a sale of the Animal Health business, the Board of Directors (whichever Board is elected on this ballot) must distribute the remainder of the proceeds, after paying off the debt, to the shareholders by way of a share buy-back."
Then shareholders could vote for McRae and his Board, or for Wells and his Board, but for sure we would get money back if Animal Health were sold. It is my understanding that even I, as a shareholder, could ask for this resolution to be added to the AGM ballot. I would also be sure to register my shares.