RE:RE:RE:RE:RE:RE:RE:Australis Capital Sees Shareholders Condemn Passport Trans You can tell the market doesn't share the same enthusiasm as Scott. The stock traded lower right after the CC.
Ausa SH will see their share diltued by 50% - 80%. 30m pp, 30m warrants, tens of millions from acquisition and millions more in earnouts.
Passport gets 2m if rev reaches 7m, 4m if rev reached 8m and 25% for rev above 7m.
Passport also gets 10x muliples for the company. 25m-30m cash n cash equivalent. Passport's net profit is only roughly 2-4m.
Scott said Cocoon is lucrative and has immense potential so why not just stick with Cocoon? And preserve our cash. Why dilute our shares by 50-80%?
While Passport SH get immediate ROI, Ausa needs to slowly build SH value in order to rebuild SH value after substantial dilution.