>Maybe figuring in the debt?
I don't see this, Mike. From what I can tell it's an outright stock-for-stock swap, with ALYD surviving. In other words, each share of DSYS you hold will transform into roughly .35 (?) share of ALYD on the closing date. So the buying company gets all assets and liabilities, including cash and debts, as part of the package.
I've never seen a discount as high as 30% before, but I suppose it represents the enormous difference between market value of shares and purchase price. That is, if the purchase doesn't occur, your shares will be worth $1.12 again instead of $2.75 or whatever, so the discount reflects the risk. And I suppose some people still suspect that there may be more bad surprises in the financials that will cause ALYD to back out of the deal, since DSYS hardly enjoys a good reputation for accurate financial disclosure. |
