I understand it somewhat differently from the announcement:
"The lower of $0.105 and the 15% VWAO of HLF shares over the last five days on which sales in HLF
shares were recorded up to and including the SPP closing date (currently expected to be 14 March)"
For example:
1. If the VWAP (I think VWAO is a spelling mistake; unless it means:
Volume
Weighted
Average
Offer) would be e.g. 15c prior 14 March, then the offer price would be 10.5 as it is lower than 13.5c (being 15 minus 15%).
2. If the VWAP is 10c prior to 14 March, then the offer price would be 8.5c (10 - 15%) as it lower than 10.5c
I read it as the offer price will never be higher than 10.5c, but can be lower, or really low (if the VWAP is 6c or 8c) depending on the 5 trading days before 14 March.
IMO, this is somehow crazy and designed to get cash at any price, no matter how low, always 15% cheaper:
- it encourages selling, and then one can get shares back later 15% cheaper
- keeping selling pressure depresses the price
What we are witnessing over the last 3 days is a shake out of shareholders: Old ones out and new ones in.
