azr caveat deal

Imo the deal AZR has just announced is a good one for MGX. AZR declare the NPV of the royalty alone at $29.1M so paying $17.5M has to be good. The price had to be below $20M otherwise it would have needed MGX approval (75% voting yes?) for the issue of more than 10% of the share capital of AZR so that prevented ARC getting paid more.

The AZR announcement though, in one important aspect, does appear to contradict ARC's announcement and that is on the three conditions ARC state for acceptance of MGX's offer. In AZR's announcement it says condition 2 "or" condition 3 but in ARC's letter it states condition 2 "and" condition 3.

I wonder if AZR will negotiate any "charge" with its financiers should the funding not be used in the event MGX is successful to put an additional cost onto MGX.

Anyway MGX should not raise its bid and also not extend the offer so as to force AZR shareholders to make their minds up. This means MGX would then know whether it was worth making their offer unconditional within the 21 day period stipulated by ARC. (a condition no doubt thrown in by AZR to frustrate MGX as what difference does it make to ARC? a few weeks here or there)

After this stuff up by AZR I would think there are plenty of fed up shareholders only too happy to take MGX stock. I imagine the banks have added an extra margin onto the loan terms knowing AZR does not have the time to obtain finance elsewhere too!