Q: Another company agrees to a low sellout price .Owners only one gets rich on this sale
5i Research Answer:
Insiders own 17%, and the stock is up 93% in a year so had already gone up before the offer. A takeover will never make everyone happy, but the small cap space is risky, and if investors do not give a company the right valuation then a third party buyer typically will. It is an all-cash offer at a 52% premium to the price at year end, so we would consider it a decent offer at least. Shareholders can vote 'no' if they want to.