PIPE deal soon.
I think franchises are hard to sell without regional/national advertising to offer - that's a big part of what franchisers offer. Like BWLD ... it's one big ad machine.
"definitive evidence of what a willing buyer is prepared to pay" ...
What circular logic ... we sold at a fair price because that's what they offered. That is ... the sophisticated buyers.
... the $48,500,000 cash from the mysterious "prospective investor."
Prospective? That doesn't sound good.
"Sales figures for 1Q16 and the year ago period are being reported net of sales taxes and other revenue related taxes, RCI having chosen to early adopt new revenue accounting standards."
Shocking! I would be careful here ... they don't want it to look good!
What do we shareholders know about banking? Well, I know "The Heritage" was a restaurant at the Beach.
Way the meeting extension voting works, bank has the upper hand, so shareholders need to really try hard to get their friends to vote "no."
Change the record date ... oldest trick in the book!
When international stocks crash, investors will look local. When liquidity dries up, borrowers also look local. World financial turmoil helps local banks!
The private investors pay $11.52 a share; the bank registers the shares with the SEC so they can be traded on the market; then the private investors can turn around and sell them.
Is that how it works? Sounds like a great deal for the investors!
I can see what the board means, but that rationale does not apply when the shareholders are 100% cashed out, so I would say the board is 100% wrong!
What about this reason: The board of directors' "belief that a merger will provide a positive outcome for HBS' customers and employees to participate in a larger organization with a strong balance sheet and an enhanced presence in the Hampton Roads market;"
That's fine, the board can take a broader view like Bernie Sanders if they wish, but it doesn't help the shareholders!
China crash will not affect "Main Street" USA. Small banks will profit! As market volatility increases, more investors will be looking for safer assets.
I mean ... if the bank is going to go with a cash deal and trigger all these taxes, they need to explain the rationale behind it. So what does the proxy say is a reason for the buyout ... ahem, we mean "merger":
" the fact that the merger consideration is all cash;"
And that is good because ...
Here's a suggestion: "As Irving Berlin said, we love America and we want to pay taxes."