Sir Royalty Income Fund SIRZF

RE:Contingent Earn-out?

[Fabozzi]

BlueJay2020 wrote: Just wondering if there would be any possibility of, or shareholder interest in, a contingent offer which includes cash up-front and then an earn-out clause which provides for additional consideration if and when certain targets are met?

That would allow current shareholders participating in some upside for a certain period, but allows SIR (or another buyer) to get their hands on the shares now, without paying a large amount upfront.

Let's say, for the sake of argument, $5 now and a max of $3 spread over the next 5 years.

Interesting concept but I dont really think that will work with SIR as their approach was fully opportunistic and they probably thus have little interest in bumping their bid by a third and giving upside.  As well, we don't know who is backing their potential bid......could well be a non-bank that is providing convertible debt to participate in upside and would not be interested in sharing that upside.