RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:THERAPIX UPDATE TODAY For the life of me I can't make this smaller, but it confirms your thinking.
Fundy13 wrote: Teh LOI was for $48million US and the HUGE SP was to be calculated using a 20 day moving average for the 20 days prior to the closing of the deal, which was expected to be sometime in January. So the deal could not have been done at $0.39.
After the definitive agreement woudl have been signed, then the 20 day average woudl start. So neither TRPX nor HUGE would know the number of shares of HUGE TRPX shareholders woudl end up with. I am fairly certain that HUGE is looking to change that part of the deal and they should. the SP is far to volitle to make a deal that way, they could sign and SP drop backt o $0.10 and then they are giving away half the company.
The deal needs to be for a set number of shares based on current SP, we will see if TRPX is ok with that. TRPX has another deal in their back pocket with CURE, so they may not be willing to budge much from the LOI. They also may recieve financial compensation from HUGE for breaking the terms of the binding LOI. They did not say in the PR but binding LOI come with penalties from breaking the terms of the agreement, that is what seperates a binding LOI from a regular LOI.