RE:RE:RE:RE:RE:So What's the Play Moving Forward?Hello Sam
Thanks for your reply. Your right, all mergers don't work out. However, the majority of those are after they a merged company. This one was called off before they even merged. That is unsual and demonstrates a lack of due diligence on both parties. In other words, don't make announcements and promote the merger for months and a few weeks before call it off. This does not add to managment's credibility. Anyway, let's move forward. I agree that we need to see something before year end. And here's why.
Does the following scenario makes sense? I am just asking. Why would Compass or Mindmed not make an offer of .30 cents for RLH. This would cost them approx 100 million based on current share count. They pay for the take over using 30 million in debt and the rest in shares. After the takeover, they use the 30 million sitting in cash at RLH to pay off the loan. It would be similar to a leveraged buyout but not all in debt. In essence it would only cost Compass or Mindmed .21 cents a share under that scenario. The next question is : Whould RLH shareholders go for this? Well remember that the initlal IPO was for .25 cents. So if someone is offering .30 cents that is a 20% return over 18 months, not bad.Remember we have very little institution support if any. So they cannot turn to a few large insitutions and ask them not to sell their shares.
The above scenario is another reason, you cannot leave cash sitting around, with a depressed share price. In other words- Todd may soon be out of job