RE:Cant believe it went through Respectfully,
You have to put the offer in a bigger context than your own situation.
I'll speculate that you bought higher than 6$ and ended up riding it all the way down to 3.5ish and now you are forced to sell an unprofitable trade, which is unfortunate for you. We can all sympathize with you.
But since the stock splipped from 6$ in November of 2018 all the way down to 3.5$, any purchaser for a long position since then bought at a price under 6$, as others gave up on the stock, they sold to people who would have a different vision than yourself. Maybe the offer came off as a white knight for someone who bought at 4.5$ in 2019, only to see their investment drop to 3.5$ and the promise of 6$ came as salvation with a pretty good/quick return ultimately.
Then, once they announced the offer, the stock immediately attracts a new kind of investors who specializes with Merger/Arb and 100% of which would surely vote in favor of the arrangement because that is the entire basis of their investment.The volume on the announcement is usually huge and a lot of big institution accumulate as people give up on management, think the deal will fail and take the premium to the pre-announcement prices, or find better opportunities.
All in all, you and your investor group were battling on the proxies with others who had a completely different view than yourself and they ended up having more shares. It was still very close however 60% vs 40%, but you have to come with terms that this is your situation now. That is the nature of democracy and no one will block the deal at this as that would be against the majority. Obviously, Pala ended up targeting the right shareholders and negociated with them some terms that would give them the votes for the approval. You get the same payment that these shareholders will get, but obviously, they tendered to terms that were acceptable for their own situation.
Maybe you should open your mind to other opportunities the situation brings. You could potentially recuperate some of your losses, or even turn the whole situation to green.
Frankly, I'm a merger/arb guy... I'll admit that I hate seing good assets held by Canadians sold to Russian billionnaires or even Chinese giants/government for that matter. But that is the nature of things now a days. You can't spend your entire life fighting it... You're best focussing your energy on trying to profit from these situations.
That's by 2 cents.
DonDeanoMarco wrote:
I really dont believe people voted for this to go through. Who on earth profited.