I always like to have a bit of a guess at the post-acquisition value of shells, so here's a wild stab. We know TC like to clean-up registers for incoming businesses, so with that in mind:
777 fpo (existing)
223 fpo (vendor consideration; just for a nice round 1b fpo total)
1b fpo total
20:1 consolidation = 50M fpo
CR of $2M @ 20c (10M new fpo)
Existing cash ~1M Proforma: 60M fpo; ~2.5M cash; mc ~ $12M @ 20c
Therefore, buying up to 1c would be the equivalent of paying the CR price that will be offered to TC clients. But as we saw with CTT, the market can be willing to pay well above the equivalent CR price if the re-listed entity is expected to do well, gap-up etc. CTT gapped-up nearly 100% from the 10c CR price.
PTR Price at posting:
0.7¢ Sentiment: None Disclosure: Held
