Amarin Corp Plc (AMRN)

[biowreck]

CVRs can transfer much of the risk normally borne by acquirers to the shareholders in the target corporation. Instead of offering more for the target and bearing downside risk, the acquirer can use less cash or stock, and effectively defer part of the purchase price to a later date, or, indefinitely. After all, CVRs are only payable upon the occurrence of some milestone event by a future date. If the milestone is never reached, or is reached, but too late, the acquirer pays nothing.

When people are referring to a “complicated deal”...I wonder what the milestones would look like with dates so as to not make it too risky for the cvr holder.