Copy of SS postHi folksWell what do ya know.. :-)Good to finally...

Copy of SS post

Hi folks

Well what do ya know.. :-)

Good to finally get the details of the placement out.. and raising $1.5m is a brilliant result.

As for the marshmallow acquisition... what a ripper!

So much to say, but for the moment, lets focus of the deal and some numbers.
In Calendar 2008 revenues from these products are expected to be US$7m with US$1.8m in profit (after the payment of the $500k royalty fee).

BRT are buying this business for US$4m.... which means at a little over 2 times this years earnings!

That is fantastic. Not to mention the synergies available and the amazing growth potential. Like the announcement says.. these guys have seriously been supply constrained (sounds like another company I know!)

Marshmallow Shooters havent been sold into the mass retailers in the US yet, and they havent been sold into Europe either.

Furthermore... Reveal has been involved in the distribution of the products and Enertec has been involved in the manufacturing!! Therefore the business is already familiar with the product, which will hopefully mean less lead times before sales can be ramped up.

And also, good to get some clarity in the 3B regarding the convertible notes. $300k is converted at 6c with the other $100k (the fee) and any subsequent note, at a 20% VWAP discount.

BRT are going to have say 110m SOI, and are looking at around $4m in profit in 2008 (may be a little less, but lets go with this). So if you were to apply a p/e of 15, you would be looking at a $60m company value... or around 50c share price.

And who knows how the MemoToys are going to sell (remember them!) and whatever else the cat drags in this year.

Happy to be holding

Cheers
Livas1