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08/03/17
15:50
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Originally posted by asb83
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The proposal will be to offer the 1PG business to the founders in return for them relinquishing their shares. They aren't selling the business for $0.
The founders I think currently have a total of about 15-20 million 1PG shares. At current share price, say they have 20 million shares, that's $3.3m. I think that's a fair deal to dispose of the business. You couldn't really sell it for much more than that given the most recent quarterly. It's a shame Patrick Riley sold down 75% of his shares in December. He knew this is where it would end up.
This is a quote from Merchant recently:
It'll be interesting to see the argument put forward by Joanna and her squad. She won't go down without a fight. She has seen her paper wealth go from somewhere close to $100m to nothing. Shareholders would only vote against the proposal if there was evidence put forward that a lot more money was going to be coming through the door very very soon.
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Interesting Times - Thanks for the post and your thoughts, it is appreciated. If it does happen as you say then its still a good thing for current holders. I haven't done the exact sums but if it happens as you say then the Cash Backing will be approx 23 cents per share.