RE:RE:RE:RE:RE:RE:RE:RE:They think we are stupid... With the new announcement the dilution is 11.57%
I've had the same thinkings about what exactly we are buying, it really only mentions the Molly Maid type service directly, but is sounds like there is more involved (hopefully we hear more eventually). Also I believe that the funding we are giving to acquire the royalty would likely be used for expansion of the company we purchased which in turn is a + for us.
I think the deal seems a little expensive now, but the yearly multiplyers and the wording seems like we get a bonus payment should the company achieve certain growth numbers. For the next 4 years we get royalty increases of 5% and then 4% for what it seems like 46 years after if I understand it correctly. With most of our other holdings we are getting like 2% or less increases yearly from what I remember seeing.
I'm on the fence about what this is and can do, but I don't really mind the deal. Numbers are what I'm interested, I would like to see this put some on the board but it might be close to 6-9 months before we see results and a year or 2 before we get a real good grasp on this.
Anouther thing to look at outside what this deal is, would be the fact that we have gone more international with the deal and somewhat widened the idea of what we could get royalties on.