RE:if Redcan passes on the deal we could see below $4/shareVeritasVern wrote: I think that would be a certainty. Or if the terms are changed it could decline somewhat as well. Thoughts?
Quote;
Summary of Acquisition
Under the terms of the Share Purchase Agreement, the $925 million purchase price will be paid to the Redecan shareholders as follows:
- $400 million of consideration due on closing paid in cash; and
- $525 million of consideration due on closing paid through the issuance of HEXO common shares (the “Consideration Shares”) at an implied price per share of $7.53.
The $7.53 price per share represents the five trading day-period
volume-weighted average price (VWAP) of HEXO common shares on the Toronto Stock Exchange ("TSX") as of the close of Canadian markets on May 27, 2021.
Quote;
The Share Purchase Agreement provides for expense reimbursement provisions in favour of the Redecan shareholders if the Transaction is terminated by either party in certain specified circumstances.