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What is the benefit of 20m extra shares when they haven't sold 1...

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Dragonlord

230 Posts.

72

03/09/20

14:34

Post #: 47059651
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Originally posted by PrincessKate: ↑

"In my opinion, the owners of Logo would not sell for such a low multiple".... I assume you can't read financials or maybe should have a chat with peopel who do...

...Logo was bankrupt... look at their cash and their payables....not deemed a going concern....that is why they were operating with Line of credit....unsustainable business model....

....so the way I see it...Bane & Joel needed revenue to hit those performance targets before Dec 2020...and Logo needed cash.... and what this is what you get....take away the $11M intangibles...you will see that the ~$12M they have paid for 60% was ridiculous... Logo had a break-even business model if you write off all of the over 90 days due receivables & warranty provisions....

Bottom line...I wouldn't even paid $1 for the business....but hey...if you spent other shareholders money to give yourself 20M shares...you would probably pay whatever price....and that is what they did...these performance shares is deemed fraud.... they have changed the whole business model of the prospectus....and the intent of the revenue targets....

...time for another ASX aware and class action if you ask me....brace yourselves....

...my two cents....

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What is the benefit of 20m extra shares when they haven't sold 1 share, and as you are suggesting they may lose the case against ASIC and are running this company into the ground.

I'm not defending their decision to pay themselves a high salary early on before execution and economic success, but I don't see the performance shares as a problem as they are not selling now, and I don't expect them to in the near future.

GSW Price at posting: 64.0¢ Sentiment: Buy Disclosure: Held
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