Just some Food for thoughtSome key questions all investors should ask themselves:
1) What if Novo and KL agreed to extend the 14,000,000 warrants (exercise price $6 CAN) due in Sept 03, 2020 out for another 2 yrs to Sept 2022. This is allowable under regulation and mutual agreement.
https://stockhouse.com/companies/bullboard?symbol=v.nvo&postid=30249617 2) Do investors (and company management) believe that Novo could actually exceed the $6 CAN stock price in the near future, and have the option to exercise the warrant "acceleration clause". This would of course provide Novo with another $84,000,000 into the treasury
3) Could Novo accommodate the KL warrant exercise without having KL pass the 20% take over bid threshold if they decide to exercise the Acceleration Clause on the warrants?
On August 25th, Novo will have closed this latest PP offer. This PP offer was revised twice, with the lastest revision consisting of a minor tweak (accompanied by incremental KL share selling). Is an adjustment towards "something" taking place here?
When the PP is finally closed, Novo will have:
14,615,384 (PP) plus 188,736,905 (current NVO outstanding) = 203,352,289 (total outstanding)
The declared KL share ownership of NVO (prior to this PP) = 29,830,268
Latest KL share selloff of NVO (in harmony with the PP) = 29,081,568
The exercise of the KL's 14 million warrants sometime into the near future (if agreed to extend) would put NVO's outstanding shares at 217,352,289 shares
If the 14 million KL warrants were to be exercised after August 25th PP closure and under the previous share ownership amount, then KL would end up with:
(29,830,268 + 14,000,000) / 217,352,289 = .202 (over 20% Novo ownership) If the 14 million KL warrants were to be exercised after August 25th, and as of this recent KL sell-off of NVO, then KL would end up with:
(29,081,568 + 14,000,000) / 217,352,289 = .198 (or under 20% Novo ownership) And the above can all be elegantly accomplished without interfering with the Novo Management Option share plans.
I don't want to get into wild speculations on what's on here, but I do believe the following:
1) KL does not need the money. These sell off's are only significant in % owneship impact.
2) KL does not want to take over Novo
3) KL does not want to lose its investment in Novo
3) KL would like to keep all options open
As I mentioned previously, a lot can be done between cooperating companies that seek similar goals. The coincidences between all these activities should be considered.
So investors should try to make more effort to understand the implications of what they are witnessing. And the greater impact of what these small financial actions may have on the independence and health of Novo.
What may actually be occuring could be very positive for Novo.
Tx