TSXV:MRS.H - Post by User
Post by
SchiffKnowsBeston Aug 09, 2018 12:23pm
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Post# 28434133
If I Were Federal Resources...
If I Were Federal Resources...Let us go with the 10% royalty for instance and leave out the upfront or milestone payments(If there are any). Simply using the $400m USD deal over 5 years that would mean paying us $40m USG or roughly $52m CDN during that time. Who in their right mind Let's a company walk with a market cap of $30m CDN given that KNOWN scenario. Now, the problem lies that our market cap is so far off reality it becomes a stumbling block for negotiations. The end result has got to be one of two scenarios. 1) Sell the whole kitten cabuttle for the biggest premium ever given ($2-$3 range). 2) Sell MRS to Federal Resources and spin out AMBER into a new company and have Federal Resources give us $10m working capital to get us going. That is the easier negotiation. $2/share MINIMUM