Originally posted by Mr_Cod
The alternative view to the deal that RT initially agreed with Acadia (for the NA rights) is that he should have sought a higher up-front payment and (by default) lesser royalties down the track.
Before the deal was announced we had a "sheet-load" of opportunists (unlike those of us who have been invested for years) who invested assuming that the up-front payment would be in the range of $50-$100m.
They've deserved to be burnt - but that meant the rest of us have suffered proportionally.
I'd like to put on record the following:
- I'm highly supportive of the original back-ended agreement
- I'm pleased that Acadia's "less than acceptable" offer for the ROW rights was rejected
However, I still can't believe that Acadia has (initially) underestimated the value of the ROW opportunities and (therefore) don't believe they are out of the race.
To those who continue to criticise RT because of the short-term weakness in the SP - you'll get no sympathy from me.
MR COD,I'll disagree with you here.I've been in NEU for years(cant remember),and I expected a bigger upfront deal around 50 millionl.To say those people expecting a bigger upfront deserved to get burnt isn't a good thing.I bet you I'm not the only long time investor here who expected a lot more than 10 mill.This end of town is about speculation after all.How can you be happy when the sp was $3.60 ,and now we are here.
Tauren,I don't think anyone else was knocking,or else why would they tell us ''we have now hired a firm to help us search a deal.Surely,if we had something else,they would come out and say ''we are now negotiating with another party.''Please don't use your argument of the company would be derelict to attempt doing a deal themselves,as they'd done a deal already and were trying to do another deal.
(20min delay)