Can you explain to me the point of issuing warrants for 20% of Capstone and then giving the option to buy the remaining at a set total price of $200M...
if they had to pay $40M for the 20% warrants, it would be the exact same thing as just giving them the option to buy the whole company for $200M without issuing warrants.
Logically one would reason that the deal was this:
MSLP will use Capstone as a single source provider therefor guaranteeing $90M/year business. MSLP also had to spend $2.5M to build out facilities. In return, Capstone gave MSLP 20% of their business for this agreement.
Capstone also gave them the option to purchase the remaining 80% @ a set fixed price ($200M total price)...which means MSLP needs $160M to purchase the remaining 80% they do not own.
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