International Zeolite Corp. V.CNZ

RE:RE:RE:RE:News Releases

[Slyincalgary]

Hmmmm, did you even make an attempt to read the note that explains it?

Goodwill can be positive or negative based on what you pay for a company based on their asset value. In this situation, if you read Note 5 in the financials, EI was purcahsed for 1,161,497. The Goodwill value comes from the difference between what EI's net assets were and what the purchase price was...the calculation is in the note.

Goodwill is paid for "intangible assets or value", unless you talked to Ray and whoever made the deal you wouldn't know exactly why they paid that exact amount. If you read the top of the note they paid 61,497 of payables and then 1.1M in cash and shares,100k in cash and a million in CNZ shares. My guess is that they saw the value in EI and what it could add to CNZ if they had some cash to operate and a much cheaper price for zeolite. Paying what they were paying from the US was killing them.

So to summarize, the net asset value on EI's balance sheet plus the goodwill number equals the total purchase price.

Man, three posts on a Sunday for me....you can tell how much snow Calgary got!

Glta