Replies to post #21615 on Atlantis Technology Group (ATNPQ)

[spazg8r]

I had no idea what this meant, so looked it up. For anyone else in the dark...


Contingent Value Rights - CVR


What Does Contingent Value Rights - CVR Mean?
A type of right given to shareholders of an acquired company (or a company facing major restructuring) that ensures they receive additional benefit if a specified event occurs. A contingent value right is similar to an option because it often has an expiration date that relates to the time the contingent event must occur.


Investopedia explains Contingent Value Rights - CVR
For example, shareholders of an acquired company may receive a CVR that enables them to receive additional shares of the target company in the event that target company's share price falls below a certain level by a specified date.

Another example of a CVR would be for a target company to set aside a large sum of money that would be transferred to the shareholders of the acquired company in the event that the price of the target company's shares do not meet a certain target or fall below a specified price.