RE:Food for thought WOW! masfortuna, you finally got it! Good post too!
Poeple think the TGIF sp went up on its own, yeah right! The merger probably got leaked out days before the announcement, which explains the spike in volume and SP of TGIF before the announcement. If this deal is killed, TGIF is back to $0.60, and next financinf will be at $0.50. Let's hope they go through with this deal cause it's good for both caompanies.
masfortuna wrote: I'm actually a newbie on this board having bought my first shares yesterad at $1.40. I wanted to wait for the q to be released and after I saw the Q it got halted. When it reopened Bammm loi was announced. I had never heard of Bamm prior to yesterday but I loved what I saw in the q and Nevada has a special attraction for me in this sector. So I bought anyway.
1. Here's the thing. The Loi was signed when TGIF was at $1. They didn't just pick up the phone and talk yesterday afternoon. This deal was in place BEFORE the Q. last week TGIF was trading sub .80 which is what Bamm shareholders would need at this point to breakeven. From the NR itself TGIF wanted to give Bamm a premium of 50%. I know most here see the sp above $2 BUt we are trading closer to $1. It's not entirely impossible that if this LOI closes in the next 4-6 weeks we are trading sub $1 WHICH INCIDENTALLY IS NOT WHAT I BARGAINED FOR. I would rather we trade higher and if Bamm shareholders get an extra bonus then so be it.
2. I spent a good chunk of my day trying to figure out this loi and what advantages it holds for TGIF. The bottom line is that for 115 million shares TGIF merges with another company. If they did a PP 2 weeks ago to try and raise capital , the pp would have been in the .50 range'ish with probably warrants attached. So let's say for 50 million which is one heck of a large PP for a company witha market cap as of 1 week ago of 100 million. That's 100 million shares plus an additional 50 million in warrants giving us 75 million cash and 200 million more shares.
You guys think they could buy Bamm for 75 million???? I don't think so.
3. I learned that Bamm has an entire array of products. It is well run . Yes they had not produced earnings equivalent to TGIF BUT they are also a young company and who is to say that they wouldn't be trading at $2 in 3-6 months. Plus we are not really sure what else THEY have in teh pipeline. I think 115 million shares (which was 115 million dollars cash value) is not a bad deal. What the sp will be in March is anybody's guess.
This will be a race for control of Nevada/Cali specifically and the US market in general.
Mas