The valuation of QBL minus the speculation of MCL is only worth 0.8c , the price QBL was before the MCL part acquisition.
Considering QBL is most likely going to apportion its 55% ownership of MCL to QBL shareholders upon IPO of MCL . What is fair valuation of MCL in an IPO ??
QBL only recently paid 49m QBL shares for 55% of MCL or $1.2m at current 2.5c , the vendor still retains 45% prior to IPO of MCL
Even if MCL is worth $20m upon IPO at 20c per share ( 100m shares ), it could be made up of - Raise $8m (40m MCL shares) , QBL $6.6m (33m MCL shares for 55% ownership of MCL prior to ipo) and the vendor $5.4m ( 27m MCL shares for 45% ownership of MCL prior to ipo)
QBL currently has 1.3B listed shares and could increase in the next few months with 175m in the money options
To distribute $6.6m worth of MCL to QBL shareholders would equate to around every 40 QBL shares (currently 2.5c) owned you will get one 20c IPO MCL share.
What happens to the QBL price post distribution ?? , does it collapse back to its pre MCL part acquisition price of 0.8c
Say in effect you buy 2m shares of QBL now at 2.5c worth $50,000 you will get 50,000 MCL 20c shares worth $10,000
If the QBL price now worth 2.5c goes back to 0.8c post MCL IPO distribution your 2,000,000 QBL shares are only worth $16,000 so in effect you are out of pocket $24,000
You maybe able to buy more MCL in the IPO being a QBL shareholder.
QBL Price at posting:
2.5¢ Sentiment: None Disclosure: Not Held
