More thoughts on the dealI had an exchange with Keith Driver by email today, and he said the share price at close yesterday was roughly the same as the share price when the LOI was first signed. He also explained that the business fundamentals of Replenish since the LOI was signed have improved, moving from $8.5 million to what they now expect to be $10.1 million by end of June.
In other good news, he said there's a pending transaction they hope to announce soon that would, in his words, "signifcantly improve that outlook this year and onwards." While not yet consumated, it's nice to hear more significant news could be announced soon.
I'm still not sure why the 20% discount was necessary, and I fear it's short-term thinking on the part of the Replenish owners. They'll get a few more shares, but as ERTH owners themselves they'll now have to live with the dilution and a skeptical market questioning the move. Hopefully the projected growth will help the market to forget.
Here's to better days ahead.