Anyone read the SEC doc released today? I thought the share price was fixed at 9.13, which was Friday's close before the deal was announced. That was also the impression management gave during the C.C.
But now this.....
"the final number of Company common shares to be issued in the Merger to be determined by reference to the average of the closing stock prices of Millennial's common stock for the five trading days ending on the trading day that is three trading days prior to the closing date of the Merger."
This would explain why the share price tanked, as it would lower the price of Jumpstart considerably.
It would also explain why the share price will jump right back up once the deal closes.
you hit it on the nose, management stated exactly what you said on the earnings call the price WAS $9.13, but like management is famous for doing, WHAT THEY SEE FIT AT ANY GIVEN TIME with shareholders money, the terms have changed from what they stated on the call and once again this latest tactic ensures MM is a LONG term good investment but they pulled the rug out from under anyone investing now thinking we'd see a run up in price to $9.13 in the near term.
The 225M is meaningless. It's just a product of the numbers that are tossed together.
Bottom line, jumpstart picked up 2.6M additional shares.
During the C.C. it was stated they would pay approx. 24.6M shares for jumpstart.
Now they will pay all of the 27M, since the price was not fixed.
The value of the deal falls, but the share count rises.