The stock has broken above the $5.00 milestone mark, as well as its 200 day moving average line. Both very bullish signals. Even more encouraging, that it did it on a day with massive overall market carnage.
there are no option exercise prices below the current buyout price, so they won't be cashing in any options-there are simply none to cash in. the $5 million penalty fee is nothing, other than pocket change. If a juicier buyout developed, they would pay that fine in a New York minute to obtain a better price.
the stock looks like it jumped in extended trading-not sure if that is an erroneous print or not. The takeout price is $7.54, so at the closing price of $6.55, buying the stock now implies 13% upside. That's not bad for three to four months. If WPRT shares keep dropping, the multiplier will simply increase to maintain the $7.54 takeout price. There is also an opportunity for another bidder to materialize, but don't hold your breath. Not sure if both sets of shareholders will vote for the deal, so that could be a deal breaker too
WPRT gets to acquire FSYS with absolutely no cash outlay, and immediately is able to capture $60 million worth of its cash. They (WPRT) are essentially getting paid $60 million to take the company for free. All they are doing is printing up some worthless shares, to do the trade. Is this illegal?
a white knight is never the initial bidder, so there is no way WPRT can be considered a white knight. A white Knight is a second bidder at a higher price