Ann: Independent Expert's Report

  1. 3,662 Posts.
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    I've listed a couple of significant factors governing my investment in IP1.

    Rationale for Proposed Transaction.

    Screen Shot 2020-12-20 at 6.51.12 pm.png

    Management will have quite a sizeable investment tied up in IP1 merged entity.

    IP1 management had invested quite a large sum of money already in the company and along with loaning cash to IP1 (around $750k from memory) and also participated in a capital raise mid 2020 investing over $1 million between themselves. After the capital raise the $750 loan was then payed back to directors.

    Comply Path is being valued approximately equal to IP1. We don't have any history on Comply Path's management's investment into Comply Path as PwC sold it to current management for an undisclosed sum. Either way, I'm sure there was a fair amount of cash, blood, sweat and tears involved getting Comply Path up to its current operations.

    Screen Shot 2020-12-17 at 12.09.31 pm.png

    T20 on 17/12/2020 including Comply Path shareholders. (T20 Merged Entity when acquisition completed).

    Screen Shot 2020-12-20 at 4.50.54 pm.png   

    So what will IP1 shareholders get from the merger?


    1. More "current" revenue.

    It appears Comply Path is generating more revenue than IP1. (Note: Comply Path's figures are unaudited).

    Comply Path's revenue.

    Screen Shot 2020-12-20 at 5.29.26 pm.png

    Screen Shot 2020-12-20 at 5.36.58 pm.png

    IP1's revenue.

    Screen Shot 2020-12-20 at 5.29.26 pm.png


    2. More "potential" revenue and business.


    Screen Shot 2020-12-17 at 12.50.07 pm.png

    Screen Shot 2020-12-17 at 5.47.16 pm.png


    Screen Shot 2020-12-17 at 10.48.01 pm.png

    3. More revenue and savings from synergies.


    Screen Shot 2020-12-17 at 12.16.06 pm.png


    4. Takeover target.


    Screen Shot 2020-12-17 at 1.05.36 pm.png


    About Bond Platform.

    https://www.complypath.com.au/about

    Independent Experts Report.

    https://cdn-api.markitdigital.com/a...access_token=83ff96335c2d45a094df02a206a39ff4

    Notice of AGM.

    https://cdn-api.markitdigital.com/a...access_token=83ff96335c2d45a094df02a206a39ff4

    The new entity share price will find its own level and I don't believe it will stay in the range it is in now for too long when good news is released, IMO. The available shares will be held too tight and half of the register (approx. 540m shares held by Comply Path management/owners) will be escrowed for 12 months then a quarter of the register for another 24 months. That doesn't leave much free float at all if a Superfund decides to buy into IP1!

    As far as risks go........   the only main risk I'm worried about is if the merger falls over!

    GLTAH's!

    Cheers,

    Jocko.
 
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