BioAmber Inc fka BIOAQ

[BearcatJohnnie]

Stalking horse bids. The CCAA regime is flexible enough to allow for ‘stalking horse bids’. This approach is well-known in the US, but is relatively new in Canada. In this process, the debtor company enters into an agreement with a ‘stalking horse’ bidder for the sale of particular assets or the entire distressed business. An auction process is then undertaken to obtain the best offer possible. The stalking horse bidder provides a price that underpins the auction process. The stalking horse bidder enters the process knowing it may be outbid and thus negotiates compensation for its transaction costs, usually in the form of a break fee that it will receive if it loses. The stalking horse bidder resembles the ‘white knight’ in a takeover situation.

https://www.financierworldwide.com/mergers-acquisitions-in-a-more-uncertain-world-using-the-companies-creditors-arrangement-act/#.WyxpJRgpCaM

It looks like this is the CCAA plan for bioaq. Read through it. This stalker horse strategy would trigger a buyout to the highest bidder which means more equity left for shareholders.