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Ann: Animoca Brands announces acquisition of Pixowl, page-16

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27/08/18

10:44

Post #: 35199623
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Originally posted by Creaturemagic ↑

This is a fantastic announcement for sure. Cash flow positive. Big revenues. 1 million active userson Sandbox. Creator of Microsoft Games as advisor.

However, $5 million is to be paid in shares. We have $5 million in the bank yet we aren't using it? Further dilution instead of using what they had. The dilution doesn't matter as much when we're aquiring a cash-flow positive company, but it's certainly weird to pay out in shares not cash.

Although the positives are:
1. If they are happy to take $5 million in shares they (Pixowl) think that $5 million will grow in value/be better than getting cash.
2. We still have so much cash, so more announcements to come?

Expand

that was my first thought too. But im guessing it will end up costing them more then just the start up cash to do the whole changeover

then my mind went to point 2 on your list

.

AB1 Price at posting: 8.3¢ Sentiment: Buy Disclosure: Held
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