OTCPK:RKNLF - Post by User
Comment by
MatWeion Feb 09, 2017 2:52pm
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Post# 25824206
RE:RE:RE:Pulled Guidance
RE:RE:RE:Pulled GuidanceI have trouble seeing how is doing a reverse listing using RKN going to give Wave and ESW any equity payout? The only cash assets in the company is the balance of the $80M after paying down the loan, and ops is still using, not generating, cash. ESW would be only be getting its own money back. RKN can't issue any more shares (who is going to buy?) and if they take out debt, that would only go onto Wave's books in a reverse listing.
I'm more of the opinion that Wave is being used as a tax shield. Huge losses from that company will absorb any gains that ESW gets from its RKN investment.