TSXV:MRS.H - Post by User
Post by
SchiffKnowsBeston Nov 28, 2018 11:09am
197 Views
Post# 29033335
Potential Deal #2
Potential Deal #2To me there is only one potential option for Federal Resources and that is to buy us out. This way they:
-Avoid a lawsuit
-Get full global rights for Flex9 and No Contact
-Acquire a comptetitor....That being UNIFIRE and have more access to $33 billion market
-Be guaranteed AMBER market
-Have access to MRS deep connections through their management and board
The only way to structure this is to buy MRS while allowing management to spin-out AMBER into new spinco with same management. I just can't see them coming to a reasonable price for AMBER with all the potential there. One concession the new AMBER co could make is to guarantee Federal Resources the market for AMBER on pre-agreed terms when it comes to market.
Also, Federal Resources can be allowed to acquire 10-20% of new AMBER spinco for a deal of a valuation......Say 20% for $10M seed money into new spinco for AMBER to be launched into stratosphere.
The next issue becomes at what price could be agreed upon. Seems 3-4 times sales (norm for industry) on the original foreign military agreement would be reasonable. This then allows Federal Resources to reap the benefits of all the other foreign militaries.
So 3-4 times sales on the orginal foreign military agreement brings us out to roughly $2.20/share. Yes of course this seems lofty based on our current share price but we truly are Daniel about to knockout Goliath and Goliath's only shot is to bite the stone and just acquire us.