We already knew they had $1.1m debt. Now zero debt and Peter...

We already knew they had $1.1m debt. Now zero debt and Peter Wall on board (co-founder of PYL and a specialist in mergers and acquisitions, equity finance and corporate reconstructions and recapitalisations).

More importantly they have over $64m in accumulated losses. How much is that worth as a tax shelter? IMO This is why the shell is being taken over and why Peter has gotten involved. $64m is huge for such a small company.

...Many public companies participating in reverse take-overs carry forward what is known as a tax-loss. This means that a loss incurred in previous years can be applied to income in future years. This shelters future income from income taxes.

They wouldn't need any cash to make a reverse takeover. All they (being the group attempting to make the reverse takeover) need is to hold enough equity to ensure they have the required stake in DUO. To get hold of that, they will need to buy shares (through issue or otherwise). Then on announcing what they will be acquiring, they will issue shares as consideration. This is how a reverse takeover works. They might also raise cash at this point (as is proposed with MYL - up 200%)

"Reverse takeovers....a bidder (DUO) offers so many of its own securities as consideration for securities in a target that the target’s securityholders end up acquiring control of the bidder itself."

Reverse takeovers have lead to a whole bunch of massive gainers across the ASX as of late. If the people behind the restructure can get the SP to 2c they don't need to consolidate.