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BioBlast Pharma merger payment


hillfronter83
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Hi,

 

Early this year, I bought some shares of BioBlast (ORPN) for MA arbitrage. The merger consideration was paid in ENLV shares and some CVR depend on certain assets sale. Before the deal closing, the assets were sold to SEEL for $3.5m in two payments and some future CVRs. When I emailed the formal CEO of ORPN, she said the first payment is waiting for Israel court ruling for tax and legal issues and should be paid out "hopefully in a few weeks". Fast forward a few months now, I still haven't received any payments from CVR and CEO is not returning my email.

 

Should I be concerned about receiving the payments?

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I wouldn't be too concerned, at least not about the company just keeping your money. The tax issue is probably real, CVRs aren't a common structure so it's very probably there is some kind of disagreement with on how to treat this payment. And Israel is already one of the worst countries with regards to paperwork requirements with merger payments. So if they can't agree quickly, totally possible that this can drag out for a couple of years. Hope all the possibly  lawyer and accountant costs aren't deducted from the CVR payment ;)

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I wouldn't be too concerned, at least not about the company just keeping your money. The tax issue is probably real, CVRs aren't a common structure so it's very probably there is some kind of disagreement with on how to treat this payment. And Israel is already one of the worst countries with regards to paperwork requirements with merger payments. So if they can't agree quickly, totally possible that this can drag out for a couple of years. Hope all the possibly  lawyer and accountant costs aren't deducted from the CVR payment ;)

 

Thanks for the response. I literally got email from the CEO after reading your response telling that they got approval for distribution.

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