the merger deal is stuck, page-17

Maybe there is an apparent mistake in the annoucement:

The percentage of the new company that existing Biota shareholders will own is based on Biota’s US dollar volume-weighted average share price (VWAP). How can the announcement states that the percentage will be between 81.4% and 85.8%?


From Nabi releasee:

"As a way of example, using the collar range described above and assuming that the historical daily exchange rate of the Australian dollar against the U.S. dollar on each corresponding day of the Ten Day VWAP is US$1.05 to A$1.00, each outstanding ordinary share of Biota will be transferred to Nabi in exchange for between approximately 0.69403 and approximately 0.96269 newly issued shares of Nabi common stock. As a result, the shares of Nabi common stock issued to former Biota stockholders will represent between approximately 81.5% and 85.9% of the outstanding common stock of the combined company and shares of Nabi common stock held by current Nabi stockholders will represent between approximately 14.1% and 18.5% of the outstanding common stock of the combined company."



How can the statement be made as if the percentage will be 100% locked in between 81.4% and 85.8%? What about if the AUD/USD exchange rate is around 1.1 or 0.9 during that ten-day period?

I would like to ask the management to spend more time on PR stuff, not on free Options remunerations!


Just my thoughts