I owned a bunch of shares and sold at .195, here is why.
Prior to the transactions PKL, FF and GCU had the following market caps. each being $3 million, $35 million and $15 million, respectively. Thus, all things being equal, a combined company would be expected to have a market cap. of about $53 million. The news release points out that each company's shareholders will own 9.6%, 35% and 55.4% respectively of the new company. Thus GCU shareholders will own 55.4% of the combined company's $53 million market cap. which is about $29.4 million worth, so at 19 cents per share that shares of GCU have a market cap. of almost exactly the value that the shareholders will have of the new company. The claims that the new company is valued at $100 million are based on flawed analysis and the huge assumption that somehow companies with individual market caps. of $53 million can some how be worth $100 million when combined. The math does not work. So with an average cost of 12 cents, I am happy to leave the game and revisit the shares of the new company when the dust settles. PS the analysis indicates that FF shares should be trading at about 18.5 cents when the dust settles.