But there can't be a merger without audited financials... and unfortunately, without those numbers, you're all guessing. They can't merge unless they have shareholder approval over at ESVS, and the conversion rate might not be accurate unless we have those numbers!
If the co is worth, audited wise, let's say 100 mil, and they have 50 mil outstanding, and ESVS is worth, let's say 10 mil, and they have 5 mil outstanding, the conversion rate should be 1:1.
Market caps are not always an accurate representation of a company's worth, and auditors know that.
There is a way to not really accurately view what the conversion rate should be without having numbers. Let's say the 39 mil figure is right. Take that and the amount of shares of each company, and set up an equation as such:
39mil/x(ESVS revenue) : Outstanding on ZULU/Outstanding on ESVS
Of course, there are a heluva lot more factors, but that's just a broad and mechanical view, not taking into consideration cash flow and company sentiments.
I hope those numbers rock,
MG Out. |
