It wouldn't. So the share price quickly dropped back. The only advantage to shareholders would be priority for Aqura shares, meaning we pay out more money. The disadvantages are that the profitable arm of Veris gets severed off. The way I see it this is a backdoor way of raising funds for Veris because the Board is unable to make a net profit. What's left behind will be a loss making surveying company so that it's likely shareholders in Veris will suffer. The other advantage I can see is that individual Board members might have a position in both companies, so they are the sole beneficiaries of the move either through receiving payments from both Boards, or if staying only on one Board, receiving the same remuneration for reduced responsibilities. One thing for certain is that overall corporate costs will rise. I see this as yet another kick in the guts for shareholders who once had shares valued well over 30c and were repeatedly over many years promised better times such as improved efficiencies, the benefits of synergies, the aim of 16-17% gross margins, and so it goes. The only thing that has been perennial, is the unacceptable net loss.
VRS Price at posting:
6.9¢ Sentiment: None Disclosure: Held
