Fun FactsI had wondered why there was a sudden rush of activity by all the Directors to convert their Options to DSU's and RSU's - I thought it might relate to some tax issue or something else I don't understand -
but in reading the Terms of the Tilray/Hexo acquisition agreement - the answer is highlighted below.
Per agreement, the RSU's and DSU's will be converted to a CASH PAYMENT to the Board members - and then cancelled and terminated.
Seems fair, right?
After all the hard work and competent management getting Hexo to where it is today, they SHOULD be rewarded, right?
You know, decisions like selling Hexo at a discounted, undervalued rate to Tilray at the expense of Hexo shareholders.
Right?
Long on Hexo!
".....all Company RSUs outstanding immediately prior to the Effective Time, whether vested or unvested, shall at the time specified in the Plan of Arrangement, be assigned and transferred by the holder thereof to the Company (free and clear of all liens) in exchange for a cash payment equal to the number of RSUs credited to such holder multiplied by the Payout Value, and thereafter each such Company RSU shall immediately be cancelled and terminated;"
"all Company DSUs outstanding immediately prior to the Effective Time, shall at the time specified in the Plan of Arrangement, be assigned and transferred by the holder thereof to the Company (free and clear of all Liens) in exchange for a cash payment equal to the number of DSUs credited to such holder multiplied by the Payout Value, and thereafter each such Company DSU shall immediately be cancelled and terminated;"