GREY:ISYRF - Post by User
Comment by
esprit1on Dec 13, 2019 5:45pm
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Post# 30453837
RE:RE:RE:RE:RE:background to the arrangement
RE:RE:RE:RE:RE:background to the arrangementHumppyus - interesting points. I think a key sort of ground zero point here is your last point
From the Backgrount to the Arrangement P. 25 para. 8
On June 5, 2019 the Special Committee terminated its engagement with the financial advisor as the Speciall Committee came to a determination the company was not in a position to make acquisitions at this time and therefore the ony way to achieve the growth and scale mandated by the Special Committee and the Board was to seek a buyer interested in undertaking an equity -based transaction.
So questions:
1. why did it take so long for the Special Committee to determine that the company was not in a position to make aquisitions at this time? What didn't Speaks, Marks and Dugay not already know??
2. What was the growth and scale mandated by the Special Committee and Board? Note the Special Committe was only created on Feb. 1 - so if Special Committee set targets, it means those targets were set after Feb. 1.
What were the targets? Were they realistic? Why were they set?
Were they materially different from any other targets previoulsy set?
Why were they not achievable?
If you listen to Q2CC - Tracy and George are both very optimistic about future of company, design wins, and "substantial" Q4.
Doesnt sound to me like there was a structural problem with the company. In fact on the CC they say that the found 1 million in annual savings (reduced head count a part of that)
The more I read the circular, the less comfortable I am with how this "deal" came to be, or my interests as a shareholder were at all a consideration.
Exit question - If we did not create a Special Committee and embark on this path, where would we be sitting today? in 1 year? in 3?