Four things I want to point out for the night crowd.
1. The asset was not sold or mortgaged with interest to generate $$
2. How could there be any substantial interest charges on doing this
as opposed to simply borrowing against his assets with a bank.
3. Immediate stock listing - liquidity - Immediate Expansion
4. Immediate capital infusion to begin production or to purchase more valuable assets.
Heres the long version
ME wants to maintain control and be able to build value for the long term realizing that what they have could be developed profitably. How profitable who knows right now, but earlier today another $400 coal mine was purchased. Stock price of the company was $51 per share. These are hard assets and commodities oil, gas & coal, some at very good bargain prices right now. Imagine what increased oil prices and more demand for clean coal can and will do for the value of the asset. Its almost my only bearish position since I didn't buy any MINE. Still thinking about IKAR though.
Consider the stock swap of $200,000,000 dollars worth of assets for stock which is valued at $70,000,000 as of right now as an interest free loan. Heres my take on this. At the time of takeover ICVI was basically nothing, Software office and a secretary. But they did have a stock symbol and $200,000 Cash on Hand. The stock was selling for as low as .02 to .07 cents per share. There were about 50 million shares of ICVI out at .05 per share that's $2.5 million + $200,000 for the cash on hand. Mr. Uselton is sitting on an asset and has little liquidity for growth or development so what does he do borrow the cash at 9% or make the deal of the century. He chose to make the deal, and at a $1 per share that's like a $70 million cash infusion at no interest that he paid $2.7 mil for or probably some portion of the additional 20 million shares. Looks like a sharp businessman to me sitting on a 26 bagger "RIGHT NOW", The key now is just how Mr. Uselton manages that $67.3 mil. for his stockholders.
From a business standpoint and the art of the deal, Four things
1. The asset was not sold or mortgaged with interest to generate $$
2. How could there be any substantial interest charges on doing this
as opposed to simply borrowing against his assets with a bank.
3. Immediate stock listing - liquidity - Immediate Expansion
4. Immediate capital infusion to begin production or to purchase more assets.
If he has any more deals like this left in him let me follow a little while longer.
I think this emperor has already bought a new suit, and if you are patient you might get one too. |
