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RE:3.4:1 share swap agreement

[longonMJ]

Well. here's my take on this whole 3.4 to 1 share swap aggreement which I had posted on the ACB last night and indicates that the key dollar value here being Aurora being over or under $12.65:

Like you said, the math is really rather quite simple if you just lay it all out.

For example, if the share price of Aurora is only at $10 on settlement date, this means:

Option A (All Share Option):  Total Value Received = $10 X 3.4 = $34.00 in shares
Option B (Shares & Cash):   Total Value Received = ($10 X 2.9493) + $5.70 = $35.193 in S&C


If the share price of Aurora is at $20 on settlement date, this means:

Option A (All Share Option):  Total Value Received = $20 X 3.4 = $68.00 in shares
Option B (Shares & Cash):   Total Value Received = ($20 X 2.9493) + $5.70 = $64.686 in S&C

And the point at which Option A (All Share Option) is exactly equal to Option B (Shares & Cash) is right at $12.65.

So, this means that if Aurora does not want to fork over any real money in their takeover of Cannimed, it would definitely behoove them to be as far above that magical $12.65 mark as they can be in order to give shareholders the incentive to go for the All-Share Option.
 

GarlicToast wrote: I know ProTrading try to explain the share swap agreement on the ACB board in a condescending way yesterday so I am going to ask my smart buddy VenMan to chime in on this post and see if anything is out of whack. We have been discussing the share swap on Auroa Face book page and this is what came out.


-GT