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Bullboard - Stock Discussion Forum Newstrike Capital Inc NWSKF

GREY:NWSKF - Post Discussion

Newstrike Capital Inc > Aurora and Cannimed deal
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Post by Theresa1973 on Jan 14, 2018 1:30pm

Aurora and Cannimed deal

Am I reading this correctly on Sedar? From what I think I understand, is, If Aurora takes over Cannimed, and  Newstrike and Cannimed do not merge, Cannimed must pay Newstrike a $9.5 million dollar termination fee. Let's hope Aurora takes them over, then we are in the green, and have money to reinvest.

What is your opinion?

Go to Sedar, click on "issuer profiles". Click on the letter "C". It will take you to all the publicly traded companies, Look for Cannimed, click on "view this company's documents), here you can find you can find any news releases, material change reports, etc. 

Go to "Nov 17 news release". On page one, at the bottom, it reads:

"The Arrangement Agreement provides that both parties are subject to nonsolicitation provisions and provides that the board of both companies may, under certain circumstances, terminate the Arrangement in favour of an unsolicited superior proposal, subject to the payment of a termination fee of C$5 million by

Newstrike to CannMed or C$9.5 million by CanniMed to Newstrike, as the case may be. In addition, the Arrangement Agreement includes provisions providing for expense reimbursement of up to $600,000 from one party to the other in the event that the agreement is terminated under certain circumstances."

WHAT DO YOU GUYS THINK?
Comment by Theresa1973 on Jan 14, 2018 1:33pm
Or does that mean if we don't take the deal we owe them $5 million? Can anyone clarify, and confirm what this means?
Comment by schocor on Feb 12, 2018 11:16am
I am a sure Newstrike gets a settlement from Cannimed as soon as the Cannimed Aurora merger goes through (2-3 months). I was pretty sure he figure was $15M not $5M.
Comment by Bigbaboon on Mar 20, 2019 8:52am
From what i read, this deal is dead and newstrike already received break-up fee from cannined quote=schocor]I am a sure Newstrike gets a settlement from Cannimed as soon as the Cannimed Aurora merger goes through (2-3 months). I was pretty sure he figure was $15M not $5M.[/quote]
Comment by Bigbaboon on Mar 20, 2019 10:41am
From what i read, this deal is dead and newstrike already received break-up fee from cannined quote=schocor]I am a sure Newstrike gets a settlement from Cannimed as soon as the Cannimed Aurora merger goes through (2-3 months). I was pretty sure he figure was $15M not $5M.[/quote]
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