Haven't had experience with owning a merged company. The merger to take place in the third quarter. Does that mean that everyone who buys Egene stock until then will be eligible for the buyout?
I like Egene and they have a great product that is sold all over the world. I'm trying to figure out if I should sell now or wait until after the merger. Even with today's trading, I'm still in the red a little.(I bought very high because I really like what they offered)
QGEN will convert my shares and pay me for them but I would lose money. This I don't like.
Can anyone on this board shed some light on this subject? Maybe some prior experience? I would still like to go long with Egene and Qiagen but my 3000 shares would be reduced to under 200 of Qiagen and a .65 per share cash.
Your 3000 EGEI will convert to 124 QGEN, plus the cash, in early July if things proceed according to plan. It doesn't matter how long you had your shares, or even if you buy some more late in June.
QGEN is an established co. with a relatively predictable revenue and income stream. Due to their larger sales force, they will probably sell a lot more Egene stuff than Egene alone would. Although I think the QGEN will do fairly well this year, particularly if the QIAcube is successful, the stock will probably not make huge gains (or losses). Low 20ies by the end of the year would be great, IMO.
So, your choice is to either sell now, to get the (almost) full payout in cash, or wait a bit and hope for a higher bid from another company (not sure whether the agreement they signed allows that), or do nothing and stay in QGEN - maybe add a bit if you like their business.