The ratio contained within Schedule D of the Agreement is a bit confusing - Anyone?
It appears Schedule D would suggest advancement of $6,000,000 in working capital would equate to an exhange ratio of 0.2110 for VIVO shareholders, but the news release stated a maximum of $3.75 million to acheive the 0.2110 exchange ratio.
From Schedule D Overall Working Capital Amount ($) Nil - 6,000,000
Additional Shares to be Issued per Company Share Outstanding 0.2157 Nil
Exchange Ratio 0.4267 0.2110
Taken from the news release:
"The Exchange Ratio at closing will be determined by the amount of interim working capital of VIVO (the "Interim Working Capital"), taking into account any funds advanced by MediPharm to VIVO up to a maximum of $3.75 million, by way of a promissory note (the "Note"). The Interim Working Capital will allow VIVO to continue operations in the ordinary course throughout the proposed closing period. Holders of VIVO Shares will be entitled to receive such number of common shares of the Combined Company as is equivalent to 35% of the issued and outstanding common shares of the Combined Company (or an Exchange Ratio of 0.4267), which may be reduced depending on the Interim Working Capital of VIVO prior to closing, to a minimum of 21% of the issued and outstanding common shares of the Combined Company (or an Exchange Ratio of 0.2110).(1)" https://www.newswire.ca/news-releases/medipharm-labs-corp-to-acquire-vivo-cannabis-inc--855690304.html