DLM (ASX) Ann: FTT enters agreement- Veterinary Medical Technology Pipeline

Originally posted by bluebottle18: ↑

TELLURIDE > you are 100% correct.... and this is what is concerning. ... It is leaving them open to being gazumped..... This so called exclusive rights for 120 day has no water as there are escape clauses in it I would presume... like all business contracts these days....
I showed the paper work to a person who I would say has a pretty good understanding of that clause..... If they have done extensive DD the announcement should have said we have purchased the company for a disclosed amount and the conditions of the sale are ?????? and we seek S/H approval for the raisng of finance etc etc... ( again I am just giving a simple explanation )

a) To issue that MOU as it stands with 120 days exclusive rights should have a purchasing price for the asset ... It means it gives them time to do DD and raise the money if required which in this situation looks likely.... the reason for the 120 days... ... What appears to be the case is they have notified the company the intent to purchase it and have asked for time to do DD and raise finance.... ( please note that this is an opinion based on the reason of 120 days and exclusive rights ) it is a very brief summary..... and there are many other reasons to explain the possible situation...
b) Here is a question ..... Do`s this technology have a PATENT... If not is it possible that another company can also build a similar machine.....

I do not deny that I may not be seeing the announcement in the manner in which is meant to say.... Am I concerned about nothing....

Another thought... Has this company stopped selling the machine until FTT complete their DD etc...... Now that it is known the company is for sale will this attract other bidders with bigger purse strings What if a major world wide stable along with other interested parties like breeding farms make an offer over and above the negotiating price FTT ... IMO unless this purchase has already an agreed price tag there is nothing stopping Longmile from accepting a higher offer...

Hopefully at the AGM all will be revealed ... Hopefully the BoD can shut down my concerns and confirm that they can not be gazumped .... As a S/H I take a great interest in my investments and losing money or not getting true value for my money makes me think outside the square... The failed business of the past is a very clear warning and maybe that is why the ASX have been very stringent in applying the law...

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I wonder if FTT rushed this deal to the market a little prematurely given the price action and increase

Normally you would announce a binding deal. This one has quite a lengthy DD period and a few get out clauses.

It's a niche sector which strikes me as odd given what they stated they were seeking, but I am happy to wait it out and give management the opportunity to build on this. If they have reviewed over 30 deals and settled on this, someone at FTT must have seen value.