Post by
MaterialsMan on Dec 31, 2022 11:07am
Thoughts on "The Deal"
Finally got around to perusing the 200 page circular. Based on my own interpretation,I can see why they low balled on the price a little. A lot of it is in the fine print. One point I picked up on was the golden parachute clause. That could cost TFPM quite a few million if folks don't see eye to eye once the deal is done. Another is exposure in Russia which will probably affect the bottom line. Seems pretty unlikely that the merger will not happen as someone else posted earlier. As for shopping it around, that's a no go due to a 24 million dollar break fee. In regards to amending the deal, I do not think that is in any way likely. It's taking a chance if one accepts cash instead of shares.
You would have to be banking on the possibility that the price might tank. There was mention of a potential negative impact on share price after the deal because of what was referred to as overhang.
Only way a better offer could come along is if an unsolicited white knight showed up with a much better price. That could happen on the remote chance that gold and silver made big time advances right out of the gate beginning Tuesday. All in all, if the precious metals sector comes to life when and if the deal is consummated everyone involved will be smiling ear to ear. If not, we will be forced to play the waiting game, or bail out.
Happy New Year