Concordia Healthcare Corp. T.CXR.R

Concordia doesn't need to pay for Amco, because

[greatplay]

Concordia doesn't need to pay for Amco, if condition is not met (below)

Concordia gross profit declined since acquisition from Amco's products... so it looks like $220MLN that everybody was talking as a big issue, is not an issue at all... no need to pay them at all.

https://concordiarx.com/concordia-healthcare-completes-amco-acquisition/

Transaction Details

Concordia financed the cash portion of the purchase price for AMCo through a combination of US$2.8 billion of debt financings, gross proceeds of US$520 million raised from the Company’s public equity offering, and cash on hand. The capital was also utilized to refinance certain Concordia and AMCo debt. An earn-out payment of up toUS$220 million may be payable to the sellers of AMCo in 2016 should the AMCo group of companies achieve certain levels of gross profit over a period of 12 months fromOctober 1, 2015. This payment will not be made should the AMCo group not achieve these targets.

[InsiderTrader]

greatplay, maybe you should tell Doug that The performance earnout targets were set really low (and always are, they are really just a way to skirt taxes on the purchase).  The last conference call management said that the £144 mil is due to Cinven, so don't start making stuff up and saying that they won't owe it.   What should be more concerning to investors is that they

[greatplay]

Sorry I don't see any of the information as public knowledge and since the date wasn't hit yet - October 1, 2016... I'm not sure whether you are right....

[LaticelnExile]

This post has been removed in accordance with Community Policy

[greatplay]

Nope, that's not what I said.... yes, there's $140 MLN payable, but it may not be payable, because CONDITION  whether AMCO performance was satisfactory by October 1, 2016... Since buyout, many AMCO metrics came down, so there's a high possibility that the payment of $140 that is due won't satisfy condition and it doesn't need to be paid as per contract.