I got the email below today from Jason Peterson at CPS Capital (the only ones that have made anything from this 'winner'...)
I wont be throwing any more money into whatever 'recapitalisation' plan they cook up. Will cop the dilution and just book up a near 100% loss to carry forward. Looks mostly like thats where this is heading. If it somehow manages to resurrect itself it will be a bonus but this one is a write-off.
Quote:Good news!
The proposed merger with ZLD has been terminated.
Given the structure of the proposed deal – this effectively valued HHI at less than $1.5m based on the ZLD share price.
This is appears to be a ridiculous valuation and one major share shareholders weren’t going to support given its valuation is closer to $15-20m!
When the transaction was proposed the valuation was closer to $10m.
All major shareholders are supportive of a recapitalisation plan in order to retain the substantial value built in HHI.
Details are just being worked out and will be informed to the market as soon as practically possible.
Thanks for your patience.
Jason
