RE:RE:RE:Payout if deal declinedhttps://www.cannimedtherapeutics.com/investors/news/news-details/2017/CanniMed-to-Acquire-Up-Cannabis-Inc-Newstrike-Resources-Ltd--TSX-VHIP-to-Create-a-Premier-Global-Cannabis-Company/default.aspx
Pretty sure it's the takeover....
The Arrangement Agreement provides that Newstrike shareholders will be entitled to receive 0.033 common shares of CanniMed for each Newstrike common share held, representing consideration of approximately C$0.505 per Newstrike common share based on the closing price of CanniMed common shares on November 14, 2017. Upon closing of the Arrangement, Newstrike will become a whollyowned subsidiary of CanniMed.
The Arrangement Agreement provides that both parties are subject to nonsolicitation provisions and provides that the board of both companies may, under certain circumstances, terminate the Arrangement in favour of an unsolicited superior proposal, subject to the payment of a termination fee of C$5 million by Newstrike to CannMed or C$9.5 million by CanniMed to Newstrike, as the case may be. In addition, the Arrangement Agreement includes provisions providing for expense reimbursement of up to $600,000 from one party to the other in the event that the agreement is terminated under certain circumstances.