Koo-Koo2
Roughly correct that this is based on a CVR. I'm not a fan of this type of an arrangement. I really want to see some concrete milestones triggered based upon certain cash flow targets. Some risks with CVR deals.
At the time of issuance, the true value of a CVR is not discernible. The risk that shareholders face remains unknown because the rights are based entirely on the anticipated price of the stock or on some unpredictable event.
If CVRs are part of a merger or an acquisition, a large part of the risk that would affect the acquirer is effectively transferred to the shareholders of the target company, thus making it easier for the buyer to offer a more attractive price.
I agree with you, to maximixe value, we need an outright buyout. Cash at fair market value or stock at a premium.
Just my thoughts.
CD
