RE: Actual Cash Pay OutEAS is not in the business of flipping property, and therefore the receipts from the transaction do not routine transaction income. It is a non-recurring gain that will be recognized on the books as a capital event, and taxed accordingly. There were property acquisition costs that would be factored in from to the asset base, as well as maintenance expenses and preliminary exploration work that was charged to that property. These expenses would be deducted from the $83 million to arrive at the net capital gain item on the balance sheet before taxes would even be calculated.
The idea that the asset sale was discounted into the market price is ludicrous. There was almost no trading activity the entire month before the announcement and nothing to indicate that the market was aware of this deal.
To have a deal close that effectively doubles the value of the company, and only generate a few cents in market gains, is purely the result of house Anonomous dumping stock all day into the market. Perhaps one fund has been slaughtered last week in the correction and has to dump something to meet liquidity and redemption requirements, so they are unloading EAS. When that overhang is gone, I suspect a more reasonable market price to be built into the stock.
cheers!
COACH247