Chelsea Therapeutics International, Ltd. (MM) (CHTP) News

If I sell at this point I will still get the CVR's from future sales?

Lundbeck's sales of Northera in 2016 were $155m so no payout on the CVR in the second year either. In 2017 sales have to reach $300m.

No CVR
For anyone not yet hearing if Lundbeck made the CVR payout. I contacted Pale Holm Olesen and he replied that the threshold of $100M was 475 DKK which is about $71M, so no payout. For 2016, the sales number for Northera needs to be $200M to trigger a CVR payout.

contaced them to see what the save were
https://lundbeck.com/us/contact-us
robin hood

I contacted Lundbeck (who bought CHTP) to see what metrics would trigger a CVR payout. They wrote back and said that the 50 cent per share payout would occur if Northera reached 100M USD in sales in 2015, 200M in 2016 and 300 M in 2017 respectively. Sales numbers would be for each year ending December 31, and it would be in February when it would be determined if milestones were met.

When is CHTP supposed to declare if it met milestone to trigger first of three possible performance based payouts? July?

Whats the verdict?

http://www.thestreet.com/story/12700990/1/chelsea-exits-in-victory-with-lundbeck-takeout.html

just wait a couple days.
I had voluntary tender if it made faster payment.
or call the transferring company, contact number is in my post a few days ago.
You should not worry,IMO.

thank you so much for u alls help.,I got a TD amaritrader account and for some reason it still shows my position on the stock under long stock value. dont see any money on my Avail. funds for trading or Non-marginable funds?. also don't see the cvr posted in my account as CHTP E1 with ZERO cash value. pls share some knowledge on what im seen or what im doing wrong. thanks a lot guys .

@Sivad and Cuban
you are paid $6.44/sh yesterday already.
no need to do anything.
your cvr is posted in your account as CHTP E1 with ZERO cash value, meaning NOT transferable.

TIME TO ROLL YOUR MONEY NOW!!!!!!!

I believe your shares would be automatically tendered for 6.44 and the QVR income stream. Generally those changes take a few days to completely show up - it is very likely you would see the remove (tender) of your shares before the cash is posted. I don't hold any CHTP so I can't report what is going on in my own account.

You did not lose everything.

I was wondering the same thing ,I haven't touch my account in over a year,i have 6k shares with TDameritrader. was I supposed to do something? would I still get paid for all my shares? how long would it take to get my money into my TD account? sorry young investor. can some1 pls share some light in my situation. thanks

I was wondering the same thing ,I haven't touch my account in over a year,i have 6k shares with TDameritrader. was I supposed to do something? would I still get paid for all my shares? how long would it take to get my money into my TD account? sorry young investor. can some1 pls share some light in my situation. thanks .

Could not sell my share due to Deployment. Did I loss everything? Cant really check my account out here.

Im Deployed to Afganistan, didnt catch what was going on in CHTP did I lose all my money and shares?

I got paid as well eom

got paid in my ameritrade account 6,444.00 for 1,000 shares
robinhood

$6.44/sh will be paid to your account in 2 to 3 weeks.
No one knows exact date.
The premium for CVR is not your money anymore.
CHTP is delisted.
You can not trade it anymore.
Your CVR record will be kept in escrow account.
CVR payout will be posted over the next 3 years.
Either 0 or max. of $1.50/sh.

can some1 pls share some real knowledge on what its going on.? where do we go from here?

Was wondering the same thing yesterday...

Volume was heavy and first spike I have seen above $5.60 in a while.

Lots of after hours volume as well, tender went through??

does any1 know whats going on with chtp ?,.where do we go from here !? wtf

Thanks for your very informative information as well as others on the board who have been helpful. I called Invisfree M&A this am and they were very helpful. I then called my broker who placed the transfer. I took the 6.44 plus the possible .50/year for 3 years thinking that has a better chance to make more money than selling for another .10 today. I had 10,000 shares so I could make up to $15,000 versus $1,000 today. Only time will tell.

Guppi00 is right.

If you don't believe in CVR, just sell the sh before 6/20 and cashout to move on. There is risk you may not be able to exit if you do not sell before 6/20.

If you believe in CVR, you can either tender sh before 6/20 or hold it without tendering. As Guppi00 says, you will NOT lose anything even if you don't tender voluntarily. same $6.44 plus CVR.

It's better to tender now if you want the deal closed and paid in 1 month. You will still be paid higher price if there is higher bid before deal closure. Again there is NO financial discrepancy between voluntary vs. involuntary tender. every share holders will be treated equally.

I tendered my share because I wanted CVR and paid as soon as within 1 mo rather than later. I want to roll my money in this bull market, but everything is too expensive now. Locking my money for 1 month may provide me better bargain entry point in stocks I am watching when I get fresh dry powder from CHTP later.

Knowing my weakness of lacking discipline and patience, it seems not a bad idea to tie myself down with 2 inches thick steel rope.

Guppi00 is right.

If you don't believe in CVR, just sell the sh before 6/20 and cashout to move on. There is risk you may not be able to exit if you do not sell before 6/20.

If you believe in CVR, you can either tender sh before 6/20 or hold it without tendering. As Guppi00 says, you will NOT lose anything even if you don't tender voluntarily. same $6.44 plus CVR.

It's better to tender now if you want the deal closed and paid in 1 month. You will still be paid higher price if there is higher bid before deal closure. Again there is NO financial discrepancy between voluntary vs. involuntary tender. every share holders will be treated equally.

I tendered my share because I wanted CVR and paid as soon as within 1 mo rather than later. I want to roll my money in this bull market, but everything is too expensive now. Locking my money for 1 month may provide me better bargain entry point in stocks I am watching when I get fresh dry powder from CHTP later.

Knowing my weakness of lacking discipline and patience, it seems not a bad idea to tie myself down with 2 inches thick steel rope.

Tendering your shares means you agree to the price of $6.44 + CVR payments. If they get 51% of shares to tender, then it doesn't matter if you personally like it or not because the majority rules (more or less, but you do have legal options if you really wanna try to fight it...good luck). If the majority of shareholders agree to the deal, then the deal happens regardless of what the minority want.

If you're not happy with the price, don't accept the tender offer. If 51% vote against the offer, it's possible they get another higher offer from Lundbeck or maybe someone else....or a lower offer....or maybe no other offer at all. Risk is the name of the game.

Just know if the tender offer is accepted by 51% of shareholders - you're pretty much locked into that same deal. Your shares disappear and you get $6.44/each with the potential for $1.50 in CVR payments. Doesn't matter what your vote was. You don't get special treatment based on your own vote - the majority's opinion is the only thing that matters.

Best of luck

My understanding is that you don't have much choice. You can tender or keep shares which will not be worth anything.

Don't know anything about tendering shares. Why should I tender. What happens if I just keep all my shares. Why shouldn't I just sell them if I want to cash out. If I keep my shares will I get the .50 per share for the CVR and loose it if I tender. What's the difference between tendering and selling. Please excuse if this sounds too elementary but I have never had a tender offer. I just buy and sell.

cash pay 0ut and tender your share FYI
to tender, just call your broker ask then they will do in on the phone for you.
Scottrade charges onetime $25 per account as processing fee regardless sh amount.
you will see your share still held in your account till deal completed.
Trading will halt if more than 50% of total sh are tendered by 6/20 and the deal completed.
If not tender expiration date will be extended for undetermined period.

CASH payout for $6.44 will take about ANOTHER 3 WEEKS from deal completion.
Again, you will nor receive cash for trading AT LEAST FOR 1 MONTH OR 2-3 MONTHS.
10 to 15 cents premium and your fund " FROZEN" for 1-3 months is the cost of "CVR".

Call the handling co direct if Any questions

Innisfree M&A Incorporated
501 Madison Avenue, 20th floor
New York, NY 10022
(877) 687-1875 (stockholders call toll free)
(212) 750-5833 (banks and brokers call collect)

Thanks!

Sure there is a chance...if the deal falls through the price could drop. But with everything in place I don't see how that would be possible. If so, it would be the arbitrage deal of the century staring at us in the face and it's time to borrow as much as your credit line allows to buy more knowing for certain you can sell for $6.44 later.

Until pen meets paper, anything can happen.

Thanks for the reply!

I have one quick question... any chance this can go below $6.44? I don't think it will but have to ask.

You will need to be holding your shares at the time of the deal closing in order to receive the CVR payments. So if you sell now, you're only hurting yourself IMO since you're giving up .10/share that could potentially be $1.50/share. I'd say it is more of a present/expected value type calc - the chance of them hitting each sales target * CVR payment discounted to today @ i%. I think the value is greater than .10/share personally.

The option activity has been interesting too - some significant buys on the $7 strike calls leads me to believe that others are expecting an increase whenever the tender offer actually is commenced. I don't believe they have actually filed the paperwork yet, unless I missed something someone please correct me if I'm wrong.

I would say that once the closing date nears, the price rises to better price in the risk associated with the CVR payments. Right now, as I mentioned, they are only valued at about .10 (current stock price - cash buyout price). I expect that to increase closer to .50 or more by the deal close date otherwise you could buy one day before the close and for a very small fee (.10) you could have the potential $1.50 in payouts over the next few years. Huge return yes, risky yes, but I think the market will price that more accordingly as the date nears. Depending on each individuals expected probability of Lundbeck hitting sales and personal discount rate, that's when I would say it is time to evaluate if the risk is work the return.

Looking for opinions on whether I should hold to see if this pops or is this pretty much a done deal?

Thinking of selling, but I do not know if I will forego the CVR.

I looked through the agreement and could not find the closing date of the merger???

Anyone know the closing date?

CVR Reading Material:

http://www.forbes.com/sites/greatspeculations/2011/05/09/shadowy-shares-the-dark-side-of-contingent-value-rights/

http://www.wlrk.com/webdocs/wlrknew/AttorneyPubs/WLRK.18405.11.pdf

Middle bollie-crossing 50ma

Fair assumption - I can't say whether or not the value is set in stone or not, but I certainly think it was low and they may have a hard time getting enough shareholders to sign off on the deal. So, a higher price from Lundbeck or someone else is certainly possible...otherwise I guess it is also possible that people want to secure a method to buy more shares right before the deal closes and the $7 strike is the cheapest way to do that if the share price moves up toward closing day? Idk, just speculation.

Also a little surprised to see options extending out into 2016 now...unless they were there before the deal and I just never noticed. Guess I have some studying to do on M&A.

I don't know if this answers your question, but is the buyout price set in stone?? Or can they increase the $6.44 and disregard the CVR...

Seems like some people are betting on this or a increase in the buyout price, may explain the call action.

I need some help understanding why people are buying a significant amount of June, September, and December $7 calls?

The price is "fixed" at $6.44/share whenever the deal closes. So where is the value in these options that I am not seeing? Covering a short position doesn't really make sense to me and I can't see a strong potential for the stock price shooting up above $7 before then (although, I will admit that a better offer is a possibility, but I wouldn't feel comfortable betting hundreds/thousands in options on the possibility...)

Anyone with a theory, I would appreciate the input.

If the $1.50 CVR was added to the $6.44 for $7.94 I would think that would be a low but reasonable offer. Even then, with all of the talk from analysts looking at $10, $12 range, an $8 offer would be the minimum low ball. However, the $1.50 is 3 years away, so practically speaking we have to consider $6.44 which is far too low. A lot can happen in 3 years. Anyone looking at MACK?

I'm also disappointed with the price. My options were apparently too rich for the deal they took.

I'm not sure if they will get 51% of shareholders to agree to the price. I think management said - "OK, you can try!" Management may have felt the pressure to do something quick while the share price was sinking and they did. It might not be what we wanted but I'm sure they took the best offer in front of them at the time. The good news is, anyone else considering Northera knows the price to beat.

For now, there is a floor on the stock - limited downside potential is my favorite kind of risk. Guess I'll be holding for a little while longer to see how this all plays out.

Good to see this investigation of CHTP this morning because I for one would like to know why $6.44 was what they could come up with...

Buyout price way to low.

There are estimates from 8-15 bucks and they set price at 6.44.

Just doesn't seem right.

Hey guys...... Will chtp go higher and what will happen with the current shares we own?

Too low ball offer to take!
$6.44 is way too low considering intra day high of $6.83.
There should be no CVR nonsense!

I am curious what the trigger is to collect CVR of $1.50/sh in 2018.
Analysts estimates ranges from $400 mil to $700 mil.
Do the math - $400 X 5 = $2 billion
The BOD takes offer for $683 mil with a guarantee of trigger sales in Year 2015 through 2017 and they are confident Northera sales will surpass the trigger. If BOD is so positive about Northera Marker, why not GIA?

It is hard to justify 70% discount on already approved Northera despite no established marketing resources.

It's gotta be minimum $8/sh CASH or I would prefer GIA.
I wonder Baker Brothers agree on this term.
I am going to join Proxy fight against this deal.
All IMO.
GLTA

P.S. I greatly appreciate hard work and all the success current management achieved for the shareholders.

strangely worded release. nut nice jump

@kingdmc I'm also holding a 1k of share. Let's me it happen. A question if I sell my chtp share will I still get the future CVR's ? I'm confuse with that

Yea I sold before the jump. My next biggest move is MNKD. I loaded the boat there in the $5's and doubled down in the $4's. Couple folks here are also there. 30-1 ADCOMM vote (no brainer for FDA) recently but a delay on FDA decision until July 15th. <---- will be huge.

Guys a question. If I sell at this point I will still get the CVR's from future sales?

Thanks - were you out before the jump this morning? I don't remember if you got back in or not. I'm still in as of right now - at only .06 over the cash offer, I don't see much downside right now. On the other hand, I feel the offer is low and see that short interest was up as of 4/15 - maybe that's clouded judgement and wishful thinking, though.

Anything in mind that I should add to my watch list? Everything I have on my watch list (except PPHM) I only view as 5-10% trade potentials. Looking for another one year, 500%+ gainer to read up on.