RE:RE:Looks like a deal coming...The financial metrics here are not as robust as was indicated at first glance.
I always thought paying $103 million for a $12 million royalty was a bit much.
They used up all their cash and took on debt in doing do and diluted the share count to 54 million.
Now, they dilute the share capital to about 70 million with this new equity raise.
Removing all costs from the $12 million of inflow and you have about $8 million in operating earnings upon which taxes must be paid.
that translates to net earnings of about $6 million or 8.5 cents per share.
Thats a p/e of better than 25 times
Very very expensive