"30% dilution of the shares to get $1m EBDAIT?.... !" Hi...

"30% dilution of the shares to get $1m EBDAIT?.... !"

Hi Guru,

Not too sure about the math here. Something like 332M shares currently in float. Approx 10M new shares for the $2M scrip they partially pay with and a further $4.5M converted at slightly under $0.21 per share so lets call that 21.6M more new shares. So all in (in terms of shares) about 31.6M. Closer to 9 or 10% dilution than 30% I would have thought.

Also if the purchased entity delivers $1M in EBITDA currently, and MSL can drive some synergy of even say 3% of sales ($180K annually - duplicate BOD, accounting, marketing, IT, etc etc) ) then Ebitda has the potential to be closer to $1.2M. And that would be a multiple of between 6 and 7 which is not silly at least to me. There is a big "IF" there as they are only disclosing "adjusted" EBITDA... so until the "underlying" details are made clear hard to really discern anything from that.

Also I am not familiar with Taubman so do not yet have an opinion as to how much they might possibly help with a USA growth strategy but accept that it could be helpful.

MSL seem to be good operators and I like what appears to be an aggressive yet thoughtful growth strategy.