Mate, where we can found you after delisting and probably GMV...

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15/08/20

18:22

Post #: 46567002
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Originally posted by Galilee13: ↑

As discussed yesterday. Many investor just can't get there head around what is going on.

The major issue is around the privatisation. And rightly so.

If the company was to duel list and IPO on the Nasdaq whilst maintaining an ASX it would not be able to achieve a higher price than its current price. The dilution at these levels would be devastating for current holders.

Basically to achieve Nasdaq listing requirements they would have to issue so many shares at these levels that current holders would be wiped out.

Let's face it, whilst the company has progressed out of sight this year, the ASX is simply not seeing it.

So, what shareholders need to understand is that if you stay listed on the ASX you are only doing harm the valuation potential.

Going private means there is no market value associated to the company. Meaning they can re list on the Nasdaq at a price that market thinks it's worth. No strings attached to the ASX valuation.

The going private part is the most important aspect of this process.

Sure it carries risk. Liquidity seems to be the common theme. But hey, the stock is at 4c and most are down a truck load. IMO most investors have written them off and put them in the bottom draw, thinking the have done there money and just hope one day in the future it will come good.

If that's the case being private for a period of time, with the possibility of more upside on the Nasdaq than the ASX, I will take that risk.

Those still struggling could look at it this way. There is this company listed on the ASX. It is in a hot growth sector. It has just recapitalised the balance sheet with over 10% of its market cap or cash. The business is growing strongly. It is about to move into a cash flow positive position. It has 2 quality medical devices that have many regulatory approvals. The company seams to be significantly under valued by global standards. You work for a private equity firm. You come up with the strategy of taking over the company and making it private. You think as the business is growing strongly in the US you will take this asset and try and sell it in the US. After a short time of being private you realise your investment via a Nasdaq listing.

We are basically doing what private equity have done for years. Find cheap assets and take them to another market that is willing to pay more for them.

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Mate, where we can found you after delisting and probably GMV forum be closed?

GMV Price at posting: 4.3¢ Sentiment: Hold Disclosure: Held
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