Q: Should I sell my shares at $18.30 after the jump this morning or hold onto the shares till March 29 2024 and receive $18.50? Could you also explain what a CVR is and does it mean we have to hold till 2026??
Thank you
Dave.
Thank you
Dave.
5i Research Answer:
A contingent value right (CVR) is granted to shareholders who tender and represents a 'potential' additional payment of up to 61 cents per share, in this case only if certain financial targets are achieved. They are not likely to trade and essentially will either be worth something and paid to shareholders in the future, or not worth anything and will expire. We would be fine keeping NBLY shares and tendering to the final offer. The return is relatively low but relatively low risk. If a compelling alternative investment idea shows up they could be sold as a source of cash, but for now we would hold.