RE:RE:Theory Re. Eric Sprott PurchaseGGGsOldFriend wrote: Yes, but the opposite is equally true for Novo. Novo had every reason to sell at a 10% discount because selling 15M shares in the open market would tank the share price, resulting in a substantially lower total liquidation revenue. Given their mutually compatible incentives, Sprott and Novo could have agreed on a price more in keeping with the market valuation, for example, an average daily closing price over a specific trading period. But they didn't do that. Instead, Sprott paid the premium. So, perhaps, he wanted the shares a bit more than Novo wanted the cash.
I suspect it was viewed as a win-win by both parties:
Novo sold their shares at a premium to the current market price and thus received a larger and knowable total amount of cash.
Sprott got 15M shares for far less than the average price he likely would have paid if he tried to buy such a large quantity of shares over a reasonable period of time on the open market.