GREY:ISYRF - Post by User
Comment by
mrmoribundon Dec 22, 2019 12:03am
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Post# 30480890
RE:Vote
RE:VoteI agree that it's not a great deal, especially in light of the recent contract signings. That said, I don't think there's any logical choice but to vote FOR. Note that if the deal is voted down Lantronix will still collect the US$850,000 break fee. Intrinsyc will be back where they were with US$850,000 less.
Also, the market HAS been tested. If someone really thought Intrinsyc was worth $2 per share then the break fee (roughly 6 cents Canadian per share) should not be enough to keep them from making a competing bid.
I wonder. It may be that the market has legitimate concerns that Intrinsyc is vulnerable to some kind of eventual technological advance. Perhaps some day their modules will be replaced by some sort of new chip. Don't know, but that possibility may explain why private equity firms aren't jumping over each other trying to buy Intrinsyc--and why Intrinsyc seems so determined to sell itself.
Also, I suspect the completion of the deal will lead to a jump in the Lantronix share price, thereby making the value of the deal to Intrinsyc shareholders a little bit better.
I will be voting FOR.