Good Natured Products Inc V.GDNP.H

RE:RE:RE:RE:RE:Return to $2

[Archway]

It's a good question. I think management just has a fixed term strategy here that they feel is the optimal way (risk, complexity, probability, reward) to extract value for themselves and in-turn for investors. The CEO has been pretty consistent in pointing to an acquisition objective. Many start-ups seek to be acquired and there can be many different reasons for it. The CEO’s interest is start-ups (his resignation from Best Buy noted he wanted to focus on this) and his expertise definitely seems more suited to the start-up - identifying market opportunity, creating the business model and then effectively scaling up. If you check out his venture capital company with Stephanie Zahn (scenario.ca) you can see their interest is early stage, retail, marketing and business development.  Practically speaking, a partial or full exit lets management convert a lot of equity into a lot of cash which can then be deployed in other ways or they may just feel at that point they have take the company as far as they can (or want) given their strengths or personal objectives.