I've listed a couple of significant factors governing my investment in IP1.
Rationale for Proposed Transaction.
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.
T20 on 17/12/2020 including Comply Path shareholders. (T20 Merged Entity when acquisition completed).
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.
IP1's revenue.
2. More "potential" revenue and business.
3. More revenue and savings from synergies.
4. Takeover target.
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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