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Posted On: 03/06/2020 12:27:35 PM
Post# of 154883
Re: craigakess #20406
While I think we all can agree than no entity would buy a company for $20 that is currently trading for $1.
A board would have a difficult time justifying a 2000% premium.
However you could imagine a smaller buyout price with addition payments for a “CVR” for NASH approval or cancel approval or MS approval etc. see definition below.
What Are Contingent Value Rights – CVR? Shareholders of a company facing significant restructuring or a company facing a buyout may often receive contingent value rights. These rights ensure that the shareholders get additional benefits if a specific and named event occurs, usually within a specified timeframe.
Of course IMO
A board would have a difficult time justifying a 2000% premium.
However you could imagine a smaller buyout price with addition payments for a “CVR” for NASH approval or cancel approval or MS approval etc. see definition below.
What Are Contingent Value Rights – CVR? Shareholders of a company facing significant restructuring or a company facing a buyout may often receive contingent value rights. These rights ensure that the shareholders get additional benefits if a specific and named event occurs, usually within a specified timeframe.
Of course IMO
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