Admittedly, it is a gun to the head issue. You basically participate or then you get diluted.
I mentioned what I didn't like about the offer is the Goldmans gets a huge fee for underwriting with little risk. Typically they encourage the company to do it at a large discount as they know the funds will come in.
The other thing is that over the past week the price has rallied hard from $1.60 to over $2.00. I believe that was on the news of the leaked capital raise. When they first started talking about a deal I suspect the price was lower and it was struck then.
Many analysts have been predicting that the shares could re-rate materially if the company got rid of the debt concerns and the retirement operations could be simplified. This will solve one of those problems and hopefully provide smoe cash to take out the minorities in Aveo Healthcare.
FKP Price at posting:
$1.77 Sentiment: Hold Disclosure: Held
