Deal = kind of a call on pot. Royalty play?!

Had a quick look at the annual report/financials + the deal.

to me looks like this means essentially:
3.9mm in hard cash (assuming the deal get approval)
+
5mm in cost recovery (of which a substancial portion might be hard cash, coming in the next 12 month)

+
removal of major liabilities, relative to marketcap.

+
a potential 20mm royalty which you might wanna discount at 25% pa. , but still could be nice money over ne next decade.

-> most important if you look at Note 2 of the annual report:
*as they won`t be the operator anymore about 75% of the annual expenses are gone. (employees, travel, regional office....)
*Directors and management fees are not very high so far

= good chance after tax they might be able to distribute about 1mm per annum as dividends, assmuming they are smart enough to stay a royalty to (high premium), and not spent it on new adventures....

cheers
treatime
*many