Big Banc Split Corp T.BNK

Reverse break-up fee.

[staz]

"Also known as a reverse termination fee or a reverse break fee. A fee paid by the buyer if it breaches the acquisition agreement or is unable to consummate the transaction due to lack of financing and the seller terminates the agreement in accordance with its terms. If an acquisition agreement provides for a reverse break-up fee, the amount of the reverse break-up fee and the conditions under which it is paid are usually set out in the termination provisions of the acquisition agreement."

[staz]

Source:Thomson Reuters Legal Solution. https://us.practicallaw.com/7-382-3770

[staz]

The quote from July 30th NR : "Completion of the transaction remains subject to the regulatory approval of the Chinese State Administration of Foreign Exchange ("SAFE"). Accordingly, the deadline to receive the People's Republic of China approvals has been extended to September 30, 2016. In exchange for this extension, Geo-Jade agreed (as of July 29, 2016, being the date of the

[ChupacabraBueno]

So BNK is entitled to the termination fee even if termination is a result of SAFE, and not through any fault on the part of Geo-Jade? That's great news on multiple levels: 1. It demonstrates commitment to the deal, which remains our best prospect of a decent return. 2. In the unlikely event that the deal does not go through it adds about 8 US to each share. With the deal looking ever more

[Toast2change]

Okay I like the positive vibe you're sending out there but the situation isn't as rosy as you may think it is... 1) Oil prices did rise after the deal went public but have since fallen to prices very similar to March values so oil has NOT gone up. 2) With over 260M shares the value of the termination fee is about $0.075 which is about a 3% bump... unfortunately share prices will likely

[ChupacabraBueno]

Good job cashing out at $2.07 Toast! Glad you appreciate the positive vibe - You make good counter points. I didn't mean to overdo it - No positive spin intended. I'm just pointing out that the announcement was very good news. While it is true that the oil price today is not higher than the price was on the date that the deal was announced (March 21?), it is higher than the price was in

[staz]

Yes, now BNK will get $20M no matter what in the case the deal falls through. That's good, but not good enough. If my memory serves me right there were some covenants that BNK can't spend more that $1M ( ?, not sure and really lazy now to go check before tomorrow's NR) on operations. Meaning, in anticipation of the deal the company kind of slowed down everything. Which made sense if

[staz]

P.S. : to Snake : It's a good time to buy now.