Leaving aside the fact that the stock fell significantly ahead of the suspension and results announcement - at a time when the market was rising, I need to consider whether I should take the loss and move on or keep my investment.
I am particularly concerned at the proposal to repurchase a substantial block of shares at $7.00 each which represents a huge premium to the share price at the time the shares were suspended and a ludicrous 67% premium to the prevailing price of $4.19. Given these numbers, my initial reaction is that the deal is highly damaging to the interests of shareholders and there is a good chance that the shareholders will vote down the proposal.
I need to spend some time getting my head around the terms of the sale and the impact on future profitability per share before making a decision.
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