Hi guys, Scott here with ya! Because so many people are asking me about $SLTM and what I believe is going on with them, I have made a public video for you to listen to my thesis regarding this matter. My thesis revolves around what I believe will be a Solta-Zeltiq (SLTM-ZLTQ) merger. I was hesistant at first to release to others besides my premium subscribers, but since I have written public articles, and so no one misunderstands my views, here is my total thesis on what I believe will happen. Enjoy!
Additional info: I misspoke a couple of times.
1. the penalty for Solta paying off loan early is 5% of $40M, which is roughly $2.2M, so $42M cost.
2. Share swap - either 1 to 4.7 to 1 to 5.3. 1 share of ZLTQ for every 4.7 to 5.3 shares of Solta. Sorry for the misspeak.
3. When I say "open bid process," I mean "broad bid" which is where investment bank solicits as many suitors as possible. In this case, I believe Solta Board wants a merger with Zeltiq and vice-a-versa. Q2 earnings 10q exhibits 10.2 to 10.4 demonstrate "golden parachutes." Additionally, the new high interest bank loan, when combined with the mentioned parachutes, indicate a defense (shark repellant) against a hostile bid. Hiring an investment banker/financial adviser, (Piper Jaffray) then having a board entrenched against any change of control not only makes no sense, but is highly illegal and subject to legal penalties under a severe breach of fiduciary duties. Therefore, I see the actions engaged by Solta as indicative of a targeted merger which has been agreed upon in principle for some time, needing an investment banker to make the deal work specifically, and to ward off "unwanted/unsolicited/hostile bids." The Parachutes and High interest loan appear to me to be at the advice of Piper Jaffray for the above mentioned reasons.
Scott
That’s clear, thanx. Lets hope for the best, eh?
Always bro, Mu-halo!
Id be safe and warm if I was in LA…..
are you gonna add more?
possibly