The last time CNN made a takeover for another company the report was also "not fair but reasonable." Share price at the time was $0.02. $5M in the bank (or was it $2?)
Numerous cash raisings since, price $0.002) no cash in the bank. Brilliant.
Now we are asked to give away control, reduce our capital by 1/100th, give them more cash etc etc.
Neither company has a viable stand alone business. Our Gross margin is 10% (or 5%, I can't be bothered looking it up). The other company's is 20%. Even if you combine and achieve a 50% improvement you still don't have a business.
If you gross margins are not north of at least 50%, you don't have a business. Full stop.
There are lots of contradictions in the reports. Cash raising is not an issue. It will be made irrespective if the take over (in reverse) goes through.
Good luck to holders. I wrote this investment off a long time ago.
Slew, where are you?
Pear
CNN Price at posting:
0.2¢ Sentiment: None Disclosure: Held
