I understand the structure, but the big selling point for TNK at IPO was that the incubation system meant they were not exposed to development risk. It is no longer possible for a shareholder in TNK to not be exposed to that risk, because they are stapled.
so far only the proposed 6m will be the potential exposed assets upon creation of TND.
Most major development companies that retain assets after completion utilise a stapling structure to protect the parent company
But TNK was never sold as a development company. It was IPOed as an operator of childcare centres where s/holders would be sheltered from the risk of developing and launching new centres.
The other think that really smells off is that the CEO/major shareholder tried to sell his own development sites into TND. Was he selling development sites to Edhod previously?
TNK Price at posting:
$1.35 Sentiment: None Disclosure: Not Held
