Trading below Net Cash with no value ascribed remaining bizConservative calc of Net cash after transaction closes -
$23M - Cash from sale of Avante Logixx ($24M closing price less $750k fee)
$2.5M - Remaining Working Capital (MINIMUM - after accounting for W/C adjustments from sale)
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$25.5M net cash
26.5M - Shares O/S
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$0.96 cash per share
Add in the value of the remaining business - doing TTM EBIDTA of $1.9M (which should be able to scale further given low operating leverage requirement and $25M of net cash to grow the business).
Even if you slap on a ridiculously low EBITDA multiple of say 4x, that adds another $0.29/share value.
Total would be $1.25/share - upside of 49% from the $0.84 it closed at yesterday!!
Absurd valuation if you ask me and creating a fantastic opportunity for investors... my only fear is that they'll be able to take this company private for anything less than the $1.75/share value that was implied by the $SECU offer!!
LONG. Glta