contingent value right

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Contingent Value Right

A right attached to a stock entitling the holder to the difference between the share price and some stated amount of money should the share price not exceed that amount in a given period of time. CVRs are most often attached to stocks after a merger or acquisition to encourage shareholders not to sell, and to give the new situation a chance to become profitable.

contingent value right (CVR)

The right to a cash payment if the average price of an underlying security fails to reach a specified level by a certain date. The size of the payment to the owner of the right depends on the difference between the specified and actual prices. The CVR expires without value if the actual price of the underlying security exceeds the specified price.
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Therefore, there is no guaranty that any payment will be made to holders of CVRs in respect of their contingent value rights.
The merger includes contingent value rights for existing Gemphire stockholders entitling them to receive certain cash payments in the event the gemcabene assets are sold or licensed during the CVR period.
In addition, IAM shareholders will receive contingent consideration from Fiera Capital in the form of contingent value rights tied to a portion of certain incentive fees that may be received in the future from two real estate funds managed by IAM affiliates, as further described below.
The case arose when Twin River announced its intentions to pay its post-bankruptcy holders of "contingent value rights" a fair value for their shares before those rights expired.
The latest offer is for EUR30.50 per share in cash, which includes a EUR2.50 per share in contingent value rights (CVR), while the first offer made in early December was EUR26.75 per share.
In addition to the upfront cash payment, Alexza stockholders will be granted contingent value rights to receive cash payments in four payment categories if specified milestones are achieved following the closing.
In addition the offer included a USD40m dividend to AuthenTec stockholders plus contingent value rights allowing them to obtain further shares in the combined company if its common stock trades below a certain level.
ACLARA stockholders will own around 48% of the company and have contingent value rights for potential cash payments.
As a consequence of the forthcoming termination of the Collaboration Agreement, and in accordance with the terms and conditions of the Contingent Value Rights Agreement, dated April 23, 2019, by and among Mereo and Computershare Inc., as rights agent, it is not expected that holders of contingent value rights pursuant to the CVR Agreement will be entitled to receive the TIGIT Milestone Payment.
The transaction also covers contingent value rights giving right to shares for an additional value of up to $55 million, based on the potential US Food and Drug Administration (FDA) approval(s) of AC-170 and two additional undisclosed products within a pre-determined period.
(NYSE: MSL) has reported that the contingent value rights (CVRs) issued by MidSouth as part of the consideration for the acquisition of PSB Financial Corp have matured and MidSouth will be making the maximum payment to the CVR holders on or about April 20, 2013.
In conjunction, about USD42.5m in cash will be paid, approximately 7.0m shares of Wright common stock and 28.1m contingent value rights (CVRs) will be issued.