Herborium Group Inc (HBRM)

[germoney2]

In my experience the outline of such a deal would be:

>CHRI and HBRM-board check the logic of the transaction and whether both sides are interested in an aquisition. (They are)
>conditions for the deal are determined between the owners/managers(price,future management involvement, earn out-clauses etc., under certain assumptions being made)
>Management of HBRM informally agrees to the deal, so the majority of the capital is "safe" for CHRI. Now it is required an officiel bid for all shareholders (up to 100%) but it is not really necessary for CHRI to take up all shares to gain control.
>officially the LOI is announced by both sides to show the real interest (That´s where we are now)
>The official DD starts, verifying the assumptions made before in the negotiations ( takes 1-2 weeks)
>afterwards the deal is (hopefully) confirmed and put into a contract, the price will be made public.
>If the shareholders agree (remember, HBRM-board has given the committment already), the offer will be executed and you get CHRI-shares or cash or whatsoever.
>If not, you stay with your shares as they are.

=> Since my assumption is that the real deal is already done, I do not think there will be a bidding up in the price, the 100% qouta would only be good for efficiency, taking HBRM from the stock exchange. but that can be done later as well.

Be aware: I am long since 2 years in CHRI