They need to set the T/O price above the perf rights (MAYAA) exercise/vesting price, with a long settlement (longer than the vesting period). At least, I am sure that is in the back of their minds. So to get a T/O SP of >$0.262, you would need the spot price to be around 20 cents at the time of negotiations. Maybe - being cynical here - that is what AP said "billion dollar" company (which implies a target value of $0.289, if you include perf shares). That is his T/O number I think - somewhere between 27 cents and 30 cents. So he will need to ramp it up at some point.
Kit.
(PS: IMO Tranche 2 are not performance shares per se - They are more akin to a golden parachute for a takeover).
