Patrick,
If your interpretation of the discounted warrant versus the hopefully
higher future value of ANCR stock price (in lieu of a lower OEM switch price) is correct, then this is very attractive for Ancor since they would pay no TAX on any shares issued via the warrants, whereas the revenues coming to Ancor based on sales would be taxable.
Of course, Ancor does have substantial tax loss carryforward,
as we all know.
-----
from your Yahoo board pots:
<<I look at the Sun transaction as a discounted OEM transaction, with the shareholders paying the discount
with dilution at a below market price for additional stock which much be issued when the warrants are
exercised, instead of paying through EPS with a lower unit cost being paid by Sun, with a necessarily
lower profit margin on the transaction. Perhaps this is what rapport was referring to as he suggests that
this deal is not a "market" transaction.
If this analyis is correct, I like the tradeoff since I want to see Ancor receive the revenue, and watch Sun
participate in an increasing share price along with us, as Sun contributes to that rise by buying more, and
more and more.>
|
