TSXV:MRS.H - Post by User
Post by
SchiffKnowsBeston Nov 07, 2018 10:39am
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Post# 28936785
DISTRIBUTOR HERE IS YOUR OFFER!!!! $2.64/share ex AMBER co
DISTRIBUTOR HERE IS YOUR OFFER!!!! $2.64/share ex AMBER coThe only way to attack MRS is to allow MRS to spin-out AMBER while selling-off the rest of MRS in an all cash deal. There is simply way too much blue sky and the distributor likely have no intention on paying for blue sky AMBER....And rightfully so. A buyout deal therefore would be for EVERYTHING else other than AMBER. The distributor can forget about a hostile offer as it simply will not happen and if anything encourages a bidding war that puts them further behind......The UNIFIRE acquisition is great on many fronts but it is essentially a poison pill as well preventing the hostile offer.....Genius from Schwartz! So here is what the distributor needs to do: Come in with a FRIENDLY OFFER for MRS and allow current management to spin-out AMBER into a new company. Within that new company you then allow the distributor to acquire up to a 20% stake by investing capital into the new AMBER company. Let's say on a steal of a deal basis of $10M for a 19.99% stake....Effectively giving them a 20% foot-hold based on a market cap of $50M. You then lock-up the distributor to vote their 20% stake with management for 3 years to ensure AMBER co has enough time to fulfill their business plan without worrying about the distributor coming in with some funny business to acquire AMBER co on the cheap. So how much can you acquire MRS for without AMBER? I say 4 times sales (norm for industry) based on the original distribution deal leaving the distributor all the other blue sky through other foreign militaries. So here is the math based on 4 times sales (norm for industry) on the original distribution agreement. $400 USD to CDN = $520M CDN Divided by 5 years = $104M/year 4 times revenue bring back to $416M / 157,431,282 = $2.64