the stock went up 150% in less than a week, people will always take profits,
Priority one does not want or need money, there will be no underwriter cause they are not raising money. they just want or need to list, the reasons we don't know but suspect it is due to part of their business plan,
As I have said a few times I think one of the main aims here is the China market, so maybe something to do with that.
Most of the IPO's that get held up is due to not getting the money and therefore not having the shareholder spread,
Priority are NOT raising money, so that takes most of any potential hold ups out of play. if they are not raising money obviously they simply want to list, the way they are doing it is the simplest and quickest way of doing so.
Now obviously they will do an independent valuation to show they are worth what they say they are.
Why are brokers not falling over getting into this, well GCN is a small company (ATM) and most brokers will not cover a stock with that sized market cap,
But as the book closing nears I am sure there will be a lot more interest
now there is still a lot of confusion on this
P1 are not raising money
118 mill shares which is 15% of P1 is being distributed to GCN holders FREE on a pro rata basis, if you have under 55k GCN you get none, if you have more than 55k GCN shares you get around 0.15 P1 share for EVERY GCN share you own with a face value of 30 cents, so it works out to be 4.5 cents of P1 share for every GCN share held, FREE
P1 will have around 778 mill shares so based on 30 cents a share it works out to be $233 mill,
GCN have a little more shares on issue than P1 so if GCN have a 50% revenue share with P1 and they are valued at $233 mill then GCN shareholders should also have a value from that business of around that, so based on that GCN shares should have a value of around 25 cents a share, WITHOUT the 4.5 cents per share bonus.
Plus value from the other business' GCN have apart from P1
Now if the brokers haven't got onto this yet is our bonus, this is what hotcopper is for, to get info to members before the broader market get onto it, embrace it.
watch the sp rise as we get closer to book closing, the brokers will want it ignored so they can play other stocks, when more get onto it and the sp rises then they will have to make their move too.
it might seem to good to be true, but look I talk to the Chairman and he knows some shareholders have had some pain over the years, so to has he, this is a brilliant way of giving shareholders a bonus, Priority are happy, GCN holders are happy, both companies will benefit from this and the business.
GCN Price at posting:
2.2¢ Sentiment: Buy Disclosure: Held
