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04/12/14
18:19
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Originally posted by JandJ
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I can not see how they can consolidate at 1 for 25 with the SP at 5c. So lets assume they will consolidate at 1 for 40. (just assume, for the moment !!)
IMO the important issue is the relative value between the company's current SHs (us) and the travel component vendors.
Current SP and MCap is valuing them as well as us, so the purchase price should be negotiated down to the same extent. They may not like it but the market can be ruthless and that is the way it has valued this scheme of acquisition. However, I believe it should rerate after the PO and relisting.
If everyone takes a haircut the thing gets a nod from me. Also need less capital from raising.
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On the button mate. Agree. Vendors have to q up for a haircut as well. Spread the pain. If vendors are unwilling to also take the medicine then goodbye.