If the transaction ratio is too low, less than 3.74 (i.e. VMY-SHs get more DYL shares), DYL SP will decrease. If the transaction ratio is too high, greater than 3.74 (i.e. VMY-SHs get less DYL shares), DYL SP will increase.
The transaction ratio is a delicate balance for both VMY-SHs and DYL-SHs to get an increase in overall value after the transaction is completed.
Also cost savings once merger occurs as requiring only one HQ and one board of directors.
VMY Price at posting:
24.0¢ Sentiment: Buy Disclosure: Not Held