It's such an interesting transaction.
I guess we'll find out in due course about debt but from the info presented I don't think there is any debt.
By accepting 100M shares, they are not valuing RWL at $85M. They are valuing it at 33% of the combined entity in 2 years time. The old 1 plus 1 equals 3.
To spitball some numbers say $3 sp, or circa $1B MC. RWLs fluence shares worth $330M. RWL set to turn over $120M this year, say 30% underlying margin, makes it a multiple of say 10 which is appropriate for high growth business.
I take the acceptance of 100M shares in fluence as an immense vote of confidence that together the shares will be worth well north of 85c.
FLC Price at posting:
94.0¢ Sentiment: None Disclosure: Held
