RE:RE:RE:Insiders Selling To GEM? From National Instrument 55-104 Insider Reporting Requirements and Exemptions
(a) the reporting issuer has previously disclosed the existence and material terms of the compensation arrangement in an information circular or other public document filed on SEDAR;
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The details of this portion of the transaction have all been posted on SEDAR, and therefore additional reporting not required.
As far as your question, why would they pay a premium of 2.5x....well,
Either GEM feels that there is long term value, and therefore more than worth the premium, or Encanto (and GEM) are lying and falsifying the nature of the agreement. If this is the case, then both parties should have the full weight of the Securities Commission squash them like roaches.
As I have no idea, I will blindly believe that the Securities Commission are well aware of the "non-standard" nature of the transaction and have done their regulatory due diligence.
I understand your reticence to believe what is written. It does seem fanciful and magical thinking, and this company has lost credibility with their delays, and lack of true transparency (a precise document laying out exactly what the terms of the transaction are).