OTCQB:EMHTF - Post by User
Post by
VENManon Mar 28, 2019 10:07pm
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Post# 29551850
TBV
TBVAlso, when you consider tangible book value for EMH it's much lower than book value because they have a huge intangible asset of $87M on the books. So the book value of $1.26 per share would be reduced by intangible book value to get Tangible Book Value which is currently 63 cents. At $4 per share the market is paying 6.35 times TBV. Now if you add $39M to assets it increases the common stock but taking that into account the TBV would increase from 63 cents to 89 cents and if the market was still willing to pay PTBV of 6.35 times then Tangible Book Value .89 X 6.35 PTBV = $5.65 per share.
So although you're adding 10 common stock to the float you're also increasing assets, cash in this case by $39M which has an overall positive impact on Book Value.
The worse thing EMH could do is get that $39M and go spend it on some stupid pharma company adding it all to an already high intangible asset of $87M.
The intangible assets as a percentage of total assets seems way to high here for a start up and adding cash would reduce that intangible asset percentage over total assets so this is good news for me as i see it.
All imo!