The acquisition apparently has $6.6m of revenue year to date, with exponential revenue growth and gross profit margins of 15-20%.
And the price of the acquisition is just $3m in scrip and $2m cash. What gives? I know Zhenya didn't get rich handing out free money.
I dare to reason that the deal today is worth exactly what's Zhenya accepted, plus the $6m in cash, so buying shares above market cap of $11m (20 cent per share) is a pretty big punt now prior to a Prospectus being issued, which will uncover all the details.
I wouldn't be surprised if it at least dropped back to proposed capital raising price, and should also state that the 25c is just based on preliminary interest, wouldn't be the first backdoor/ipo I've seen where the buy in price has changed after issuance of Prospectus.
