Ann: Cynata Enters Agreement for Strategic Alliance in Japan, page-29

I have been pondering the "investment option at a 10 day VWAP plus 25%". I actually really like this concept but it raises the following thoughts:

- presumably, the right wouldn't kick in until 10 days have passed from the deal being struck. The intention of the clause is that they pay 25% over the market for their shares. Otherwise, if the shares ran on this announcement they could have exercised immediately on day 1 and got a bargain (as the strike price would have been based mainly on the trades prior to the ann).

- on the flip side, it might not be unreasonable to contemplate that the purchasers of the right might wish that no market sensitive announcements are made for at least 10 days, so that they can exercise on a fair basis. Should a cracker of an announcement come out in less than 10 days, and the market get all hyped up on large volume, and a daytraders delight, the VWAP would be skewed out of their favour (the last run spiked for well more than 60 days which is the term of their right). I don't think that could be a term of the agreement, but there could be some kind gentlemans agreement on that.

So with the greatest degree of optimism bias I can muster, how about the Japanese exercise their right on Thursday (10 days after deal was signed), and the German deal announced very soon after..