Avecho Biotechnology Ltd V.AVE

RE:Terms

[JohnnyTSX]

Unless I am missing something, my perspective is similar:

1) If you wait until the deal closes, you will get 90c/share (in cash or DSKE shares, your choice) AND a "free ride" to the bonus payout TBD ~12 months in the future.

2) If you sell prior to the deal closing, you don't get the "free ride".

3) The "free ride" could be 45c per share or 0c per share or anything in between based on EBITDA over $18M CAD and the predetermined calculation thereof (I still need to do some homework on this piece - i.e. how much over $18M EBITDA to trigger the whole $0.45c/share? - if anyone has already done the math, I would be forever grateful if it could be shared).

4) If you add to your position at say 95c today, you are paying a 5c premium for that "free ride" and so on.  Not sure where the market will price the risk/return, but I think it would be at or near current levels.  Maybe a $1/share maximum - but who knows?

5) Folks who bought at ~90c today were smart.  They did not pay the premium for the "free ride" and have nothing to lose holding until deal closing. 

6) The decision will be when mid June (deal close) nears, you will have to decide whether to take the premium now, or wait to see what a year brings - if you think the EBITDA calculation will net you more than the premium then it might be a wise investment.

All in all it is somewhat an excercise in discipline, greed, and risk tolerance.  Good luck everyone!

John.