ah i see what you mean. my mistake. seems odd to write something you know cant apply but...
as for my thoughts on transaction - won;t know anything until detail is announced, esp as you dont know the resulting dilution
id be v surprised though if anything you can buy for low $10s of millions has meaningful positive cashflow unless it has a big debt or similar liability
but we shall see. BUD does have a listing and sometimes purely giving a private business a liquidity valve is attractive enough (though that tends to be a factor on bad investments that the private market no longer has much appetite for)
the market behaviourist in me sees this as a nice shell cup move. raise money without a deal and the stock would plummet - raise money on deal from fresh investors and you bring in new source of support that will potentially soak some of the selling from old/disillusioned holders
ostensibly if acquisition brings positive cash flow you can then also say you;ve met your fy19 breakeven target - even though thats bollocks in terms of the commitment to the original investors
the track record of company management is incredibly poor - because they overegg every outcome. so - given that fact - you;d have to take whatever the deal is positioned as and cut the assumptions in half
thats the challenge with the stock - at a granular level its actually made ok progress imo - consistent with what i;d expect from real world 2 steps forward 1 step back. thats life
but the ceo keeps overpromising so much and relying on caveats to escape regulator opprobrium - shown zero capability of pulling his head in. until he does i have to discount all his statements aggressively
quality management plays it the reverse - downplays the outlooks and overdelivers. but tech is full of this reverse method and they seem to get away with it scott free - only the shareholders who buy the bumf get slotted
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