Alpha Minerals Inc ESOFD

$6 million deal breaker fee

[infocounts]

Can anyone shed perspective on whether this sort of language is standard in these kind of agreements?

"Subject to the other party's right to match, each of Fission and Alpha may terminate the Arrangement Agreement in favour of an unsolicited superior proposal upon payment of a $6 million break fee to the other party."

[bridgetonowhere]

@infocounts - It's standard practice to have a break fee.  Until the deal is consummated by shareholders of AMW and FCU, a purchase offer from an unrelated company could always come in.  If AMW or FCU rejected the deal on the table in favour of a third company offer, then under the terms of the agreement they would be obligated to pay $6M to their counterparty (AMW or FCU) for

[infocounts]

@bridgetonowhere - thanks a lot, I assumed this was the case, but to have it explained so clearly. (Aslo, belated thanks to Stampede1 on the FCU board for replying to the same question)