GREY:GDPEF - Post by User
Comment by
LeftBookon Jun 15, 2019 5:08pm
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Post# 29829334
RE:RE:RE:RE:RE:RE:*****HALT THE SALE OF RCG IMMEDIATELY****
RE:RE:RE:RE:RE:RE:*****HALT THE SALE OF RCG IMMEDIATELY****
Sprott Lending and the other creditors will be paid.
The payment does not come from shares.
In a merger the cash could come from the aquiring company, call it XYZ
Imagine that XYZ has $20M of taxes to pay AND $20M cash in hand to pay the taxes.
Company X mergers with RCG. RCG's tax credits are used to pay X's taxes.
The $20M of cash is used to pay RCG's liabilities.
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A empty shell It is simple addition. $20.5M
There is no opinion.
$0M shareholder value
+ 2.2 owed
+ 18.3 liabilities
= 20.5 assets
I prefer balance sheet form.
20.5M assets
-18.3M liabilities
-2.2M DIP
= 0M shareholder equity
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The bidder that dropped out could be at literally any price.
1) empty shell.
2) full balance sheet
3) full balance sheet plus tax credits in a cash buyout
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The possible prices is wide open.
There is no information that says other wise.