GREY:GDPEF - Post by User
Comment by
LeftBookon Feb 02, 2019 7:20pm
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Post# 29310942
RE:RE:RE:RE:question on unused tax credits if any
RE:RE:RE:RE:question on unused tax credits if any It is best to view the company as a business and determine the per share price when the end.
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Annual Report pg 4 June 2018
Common shares $33.2M
Deficit $24.0M
Shareholder equity $12.95M
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RCG's current book value is 7.3c/sh
$12.95M/$175M = 7.3c/sh
If I understand RCG's accounting correctly the company would reduce the deficit as it applied tax credits. This would increase the shareholder equity by the same amount.
Lacking a better number I will use $20M as an example.
And assuming (silly) everything else remains the same...
($12.95M + $20M)/175M shares = 18.8c/sh
The catch is RCG has to make money to apply the tax credits.
Hopefully someone can offer a better explanation and more appropriate numbers.