Talking from two sides. I thought last quarter they said lending in the healthcare industry was an explosive endeavour.
However, lending alone is not an explosive enough product line for us as a public company.
Seems like they weren't getting much traction with its original model. 60% QoQ is pretty good but they just made this stock 25 percent more expensive than yesterday. Let me show you:
6.375 million more shares issued. Plus 2 million dollars out the door for RBP.
With 30 million dollars and 37.2M in shares originally it's, 0.81 cents in net asset back per share.
So take away what they have for RBP and it's 28M in net asset backing and 43.6M shares outstanding. That's 64 cents of net asset backing per share.
I think they should have paid for the acquisition with cash. It shows the true value of the purchased company. If you were selling your company, and they offered you shares at a 100% premium to where they were trading, would you take it? My guess is probably not... However, if they offered double the shares and doubled the premium... Optically it looks better but really it's the same as giving the shares at the regular price.
Also, try to find RBP anywhere.... No clue where it came from.
This seems too shady.