GREY:GDPEF - Post by User
Comment by
LeftBookon Jun 09, 2019 4:43pm
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Post# 29810219
RE:Sprott lending takeover or Shell company
RE:Sprott lending takeover or Shell company
the one cent buyout is $22.25M
31.3M assets
- 9.05M haircut
- 18.3M liabilities
- 2.2M SISP
= 1.75M shareholder equity
$1.75M/175M shares = 1c/sh
I assume the deal you mentioned would include the valuable tax credits - all for 1c.
It would be an ugly scenario.
If that is 3rd on the ranking, and the other bids are greater than $22.25M.
It is not clear how "no higher than $20M" fits in.
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A purchase of assets leaving an empty shell with 1c or $1.75M of assets would leave the tax credits in the shareholder's hands.
The tax credit value would be $20M/175M = 11c/sh.
The marketable value of the tax credits would be, say, half that.
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Eric Sprott has common shares and flow through shares.
The flow throught shares don't have precedence in NOI scenario.