Agreed. I have stated same in an earlier post. However, Agent asked whether the fiasco could delay the merger. That's a reasonable question that requires a thoughtful response. My recent post is meant to show the deal between AVNE and iequity, if it were to become a thorn in the merger process, might well be voided based on the terms and conditions of a standard "definitive agreement." The loophole, if you will.
"A section of the definitive agreement will include a list of closing conditions which must be met in order for the parties to be required to close the transaction. These are often negotiated at the time of the definitive agreement (although sometimes a detailed list will be included in the letter of intent).
These conditions may include (but are not limited to) such items as:
1) appropriate board approval
2) the absence of any material adverse change in the target’s business or financial conditions, (Is trading suspension by SEC an adverse change in target’s business or financial conditions? An intervention of suspension by a regulator like SEC is a serious matter and could adversely change the firm's business and financial complexion going forward.)
3) the absence of litigation,
4) the delivery of a legal opinion from target’s counsel (Who is iequity's legal counsel?)
5) and requisite stockholder approval."
"A section of the definitive agreement will include a list of closing conditions which must be met in order for the parties to be required to close the transaction. These are often negotiated at the time of the definitive agreement (although sometimes a detailed list will be included in the letter of intent).
These conditions may include (but are not limited to) such items as:
1) appropriate board approval
2) the absence of any material adverse change in the target’s business or financial conditions, (Is trading suspension by SEC an adverse change in target’s business or financial conditions? An intervention of suspension by a regulator like SEC is a serious matter and could adversely change the firm's business and financial complexion going forward.)
3) the absence of litigation,
4) the delivery of a legal opinion from target’s counsel (Who is iequity's legal counsel?)
5) and requisite stockholder approval."
