So, does anybody know how they are paying for this acquisition?
Cash or stock? If stock, this is a TREMENDOUS dilution - the combined market cap of the two companies is only about $12M. If they did this with stock, they just issued 3 times - *3 times* their current capitalization in new stock.
What that means, is that former shareholders (y'all included) now only own 25% of the company, and the guys they just "bought" own 3/4 of it. Er, sounds like a reverse merger to me. :)
If it was cash, where did the cash suddenly materialize from? And what did they give-up in exchange for the cash?
How does a company with a market capitalization of $12M (and assets of much, much less than that - most likely negative assets) buy another company for $35M? Sounds too good to be true.
If it sounds too good to be true, it almost certainly is.
Something is fishy here, there are big questions that need to be answered. Maybe the small fish just ate the big fish. But, somehow, I think the outcome of this is that there's just gonna be a smelly rotton mess laying all over the beach.
Not only don't I see answers, I don't see much interest in asking the questions. I'd leave these questions to the PosHeads to ask, but they ain't askin'. |
