'…Clearly Suboptimal': Wonderfi Stock (TSE:WNDR) Notches Up as Robinhood Subsidiary Buys In
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The deal calls for WonderFi shareholders to get $0.36 per share, and those brokers who hold warrants on the stock will get paid according to Black-Scholes values on the warrants outstanding, reports note. Most of the shareholders who voted were in favor of the move, as reports suggest that 96.28% of all shareholders voted in favor of the deal. When the broker warrant holders were factored in, that number rose to 96.3%.
In an odd twist, though, most shareholders actually did not vote either way. Over 321 million votes were cast, reports noted, which represented 48.36% of all outstanding shares. Regulatory and court approvals will have to go through, of course, and the Supreme Court of British Columbia is set to start a hearing somewhere around July 21 into the matter.
'…Clearly Suboptimal'
In a report that might explain why voter turnout was so low on this issue, we find that the process of WonderFi selling itself to Robinhood was a bit contentious. Glass Lewis, a proxy advisory firm, called the process '…clearly suboptimal' in reports. It did recommend that shareholders go through with the deal, but it was clearly not pleased with how the deal was set up.
The report also noted that getting the deal done required '…multiple seven-figure fees, compensation packages and other payments….' It even noted that one activist investor, who apparently threatened to reveal issues of '…unspecified allegations of poor governance…,' got a $6 million settlement out of the deal. In the strangest twist of all, the chair of the board will receive $1.8 million personally for '…acting like an investment banker.'
Is WonderFi a Good Stock to Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on TSE:WNDR stock based on one Buy and one Hold assigned in the past three months, as indicated by the graphic below. After an 84.21% rally in its share price over the past year, the average TSE:WNDR price target of C$0.60 per share implies 71.43% upside potential.
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