Hi zxcv (just worked out you are keyboard sequence
), I am not trying to do a tit for tat conversation here; but:
BKL paid $23 mio back in 2016, selling now for $27 mio, realising a profit of $4 mio. I can see that there is a cash inflow of $27 mio, but profit for 2021 is improving by somewhat more than 25% as a one off only.
At the same time BKL is losing the profit contribution from Global Therapeutics in the future - although I don't know how much exactly would be: A reasonable guess would be around a contribution of $3 mio EBIT.
Altogether, for 2021 profit up by $4 mio minus lost contribution of $3 mio, the transaction adds net $1 mio to the bottom line (although cash holdings are now much higher).
BKL has now more money in the kitty,
a) to cover ongoing costs such as increased marketing and advertising
b) make a different acquisition
c) invest into equipment, inventory etc
With the inflow $27 mio, BKL must do something profitable, as cash hover around the 1% mark, i.e. not enough to pay dividends.
As an investor, I would expect some sort of announcement. (Maybe there was one, and I missed it)
