It is already laid out in the primary agreement. Each party needs to complete their end of the deal for this to close supposedly in the 3rd quarter. The agreement has a lot of "each of which may only be waived with the mutual consent of the parties" clauses to bypass time lines if needed.
I suggest everyone read the primary agreement again to refresh themselves. It cover the whole concept of keeping the share price so CRRC can buy cheap thoughts. Here is the clause from the agreement that shows our current price has nothing to do with CRRC wanting shares cheap.
The A&F Agreement will further provide that following the closing contemplated by the A&F Agreement (“Closing”), CRRC will subscribe for that number of Crystallex’s common shares as is agreed to by the parties at a price per common share equal to the 20-trading day volume weighted average trading price of Crystallex’s common shares on the NYSE-AMEX ending on the date that is 30 days after Closing. The option is exercisable by Crystallex for a period of 30 days following Closing.
The closing that is mentioned above is the JV closing with permit as outlined in the A&F Agreement. It isn't the signing of the A&F Agreement it self that is closing. This means the shares that Crystallex can make CRRC/CREC buy are equal to the 20-trading day volume weighted average trading price of Crystallex’s common shares on the NYSE-AMEX ending on the date that is 30 days after Closing.
If we assume the deal closes Sept. 30th then the 20 days average is between October 4th and 29th. This is why I don't buy into any theory of keeping the current share price low for the Chinese. Here is a definition of a VWMA:
The Volume Weighted Moving Average weights the price of each bar with the volume of that bar. In this way, bars with higher volume will be more heavily weighted in the computation of the average. For example, a 5-period VWMA first sum the product of the volume and the price for each of the last 5 bars. This product is then divided by the sum of the volumes to give the resulting average. Many indicators in Investor/RT allow the user to specify the smoothing type. The “Volume Weighted” option can now be found at the bottom of the list of smoothing types. The VWMA can also be accessed in the scan language by simply using the token “MA” and choosing for the smoothing type of the MA to be “Volume Weighted”.
There is a lot of stuff in the primary agreement readers either missed or forgot. When the final A&F is completed and filed we will have all our answers.
JJ
