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Resource Capital Gold Corp GDPEF

RF Capital Group Inc is a financial services firm. The company's operating segment includes Wealth Management and Corporate. It generates maximum revenue from the Wealth Management segment. The operations segment provides carrying broker services to third parties, including trade execution, clearing, and settlement services.


GREY:GDPEF - Post by User

Comment by LeftBookon Feb 17, 2019 8:14pm
57 Views
Post# 29377873

RE:RE:RE:Sale of Dufferin for 20 million?

RE:RE:RE:Sale of Dufferin for 20 million?
What would the 2017 offer look like today ?
 
 
My understanding is that ANX made an offer in 2017 to acquire the entire business for 25c. As such it would acquire entire balance sheet and any off-balance sheet items such as tax credits. 
 
 
Using a back of the envelope approach, I break down the 2017 offer and attempt to create a 2018/2019 equivalent. 
 
 
---
 
Share count increased between 2017 and 2018.
This resulted in dilution of some items.
 
share count
2017-Jun 123.3M
2018-Jun 174.8M
 
 
The acquiring company takes over all the liabilities on the balance sheet.
 
balance sheet
2017-Jun $25.1M or 20.4c/sh
2018-Jun $33.1M or 18.9c/sh
 
 
Let's start with the book value.
2017-Jun $8.5M or 6.9c/sh
2018-Jun $13.1M or 7.5c/sh
 
 
Substantial tax credits seem to be available
2017-Jun $15M or 12.2c/sh
2018-Jun $20M or 11.4c/sh
 
 
A premium seems to have been offered in 2017.
2017-Jun $7M or 5.7c/sh (roughly 1/2 year of mining)
2018-Jun   - or 0c
 
Adding it all up ...
 
book + tax credit + premium = orginal offer  
2017-Jun 6.9c + 12.2c + 5.7c = 25c approx (offer)
2018-Jun 7.5c + 11.4c + 0c = 18.9c
 
book + tax credit + premium = offer  
2017-Jun 8.5M + 15M + 7M = 30.5M approx
2018-Jun 13.1M + 20M + 0 = 33.9M


The tax-loss credits cover liabilities on the balance sheet.

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