RE. MOKA two weeks away from deadline for definitive agreement on acquisition by DDRX. Deal is worth $35 million to MOKA ($3.25/share). MOKA is trading for $2 1/8. AP incorrectly reported deal worth at $25 million, or around $2.35/share,
U better look again,
TORONTO, ONTARIO--Coffee People, Inc. (NASDAQ - MOKA), 70 per cent owned by The
Second Cup Ltd. (TSE - SKL), today announced it has signed a letter of intent to be acquired by
Diedrich Coffee [Nasdaq:DDRX - news], Inc. (NASDAQ - DDRX).
The transaction is valued at more than $3.00 (U.S.) per Coffee People share. Coffee People
shareholders will receive $10.75 million (U.S.) in cash, 1,667,000 shares of Diedrich Coffee
common stock and $14.25 million (U.S.) in cash or a combination of cash and stock. The sale is
expected to close by early summer and will result in Second Cup retaining an equity interest in
Diedrich. The deal is subject to certain conditions, including the execution of a definitive agreement,
securing financing and shareholder and regulatory approval. Second Cup expects to receive
approximately $35 million (CDN) in total proceeds. A Second Cup representative will be appointed
to the Diedrich Coffee Board following the transaction.
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This is a complicated deal, and if the Money is in $CDN it's
not so hot.
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I have been burned before with definitive agreements, they are
worth the paper written on but that's about all, to start with
Do you really want to own DDRX, if not stay clear.
Also DDRX don't have the Money, so the deal hinges on them
raising cash some how, ( more dept ) is what this adds up to,
and why o why does SKL want to divest itself of MOKA,
these wrap around deals always seem to have hidden agendas
no way I'll bite.
Last if it was all that hot the insiders would have taken her
up by now, they are not fools.
Jim |
