Fisher, related to this I did some research last night on a concern I had. What if, I asked, a big fish Semiconductor Company , call it X, decided that they really like AXE's IP because it will take them considerably closer to developing a more commercially viable quantum computer. Tech like that could be worth $Billions. But I thought, what if if X quietly buys up 90% of AXE shares and effectively gets ownership of AXE's IP for aslittle as $300M. A steal, literally.
Well for those of you who don't know (and Im sure there are those who do), there are in place some mandatory take over Regs which would protect us. As to how exactly they work, Im no expert, and people will have to do their own research, but essentially I believe it works like this: Once an entity acquires 20% of a Company's issued shares and intends to take over the company the Entity must make a takeover bid to shareholders (they cant just quietly accumulate 90% of the shares over a period of time) AND they must offer the Shareholders "Fair value". And this is the kicker. What is fair value? Its the SP of course BUT,it also includes the value of the Company's assets (eg the IP) and the Company's growth potential. In other words Company X couldnt get its hands on AXE's IP for a mere $300M. They have to pay the full value of what that IP is worth.
That being so I agree with Fisher that among the advantages of buying into AXE is that comparatively there are not a lot of shares on issue and now apparent need for AXE to dilute shareholder's equity in the near future. I hope some people found this interesting and helpful.
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