TSXV:RBI.H - Post by User
Comment by
rahtidon May 25, 2018 9:34am
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Post# 28080006
RE:RE:RE:RE:RE:Consolidation
RE:RE:RE:RE:RE:ConsolidationHi BigPop. Right now RB is a shell company with no cash or business. Yes there's a possibility of Hugh and friends creating a new company from scratch but it rarely happens and they would have presented this arrangement to be voted on before the meeting.
An RTO is a private business looking to choose from many shell companies which one can provide them the best opportunity to go public. The private company already has a board of directors and possibly shareholders in place so when they choose RB for the RTO, those directors will join with the RB directors to lead the new company.
The new directors will get granted shares and options as an incentive and they will need to raise money to enhance the business. (Any company that is loaded with cash will not need to buy a shell). So as to avoid going into 2 - 4 million shares, they will consolidate first. They can't offer options at less than a nickel for first time options so the share price has to rise.
The number of new directors depends on the incoming company. At this point; with no real information; we can only guess at the future arrangement. For the fun of it I'll throw out my guess. Right now were possibly going from 87 million to maybe 3.5 million shares. My bet is probably a jump to 10 million shares total with a doubling of directors.
Now if Hugh and friends are bringing in a company that they're already involved with, then none of this will happen except the issuance of shres to raise money. It's unlikely because it has to be declared in advance that it's a realted transaction and for Hugh not to be charged with insider trading.
The whole gamble here is that the incoming company has will entice the market to get involved; (cannabis, crypto, AI and not something dead on arrival; diet, mining or diaper delivery).
Be prepared also that unless it's a once in a lifetime event, the share price will probably settle lower early on until assessment of the company's potential gets established.
This will not be a short-term 10-bagger.