TSXV:MRS.H - Post by User
Post by
SchiffKnowsBeston Feb 20, 2021 12:56pm
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Post# 32618963
WHAT DEAL DO YOU THINK SCHWARTZ NEGOTIATED FOR US?
WHAT DEAL DO YOU THINK SCHWARTZ NEGOTIATED FOR US?Let's try and uncover what Schwartz likely would have negotiated for us....
Remember, Schwartz and many others kept taking shares hand-over-fist rather than getting cash. We knew we had a winner a long time ago, but when the founders of UNIFIRE sold their company for mostly shares in a illiquid penny stock (MRS), then we were certain we had a winner.
Now, Schwartz is a sharp one. So what would he do to maximize the value of his shares and that of others. I think it's comes down to two options:
1) The quick and easy all cash takeover by someone like ADS. Ya gotta think that we would be talking somewhere between $1.25 - $2.00/share at this point.
2) Then there is the mother of all scenarios which has been rumored by some. ADS takes their company public and at the same time they take us out. We then acquire a certain percentage of the NEWCO.
As they say [Sell the sizzle, not the steak]. What I mean by this is that we then get to take part in one massive sizzle with ADS going public. That would likely stretch our valuation to unthinkable levels. Given that everyone is incentivized in shares, rather than a golden parachute for getting taken out, ya gotta figure this is what Schwartz would be pushing for.
Remember folks, Schwartz put little MRS in the driver seat when it came to negotiations....Even with giants like ADS.....How so?.....Here's how so:
1) We acquired Unifre. That then put lots of shares in friendly hands and gave us enough votes to be able to reject the 2/3 required.
2) Our IP is what everyone wants. Flex9, and No Contact are just two things that are going to go global....Add on top of that their state of the art electricity generating nylon suits. These have massive margins and worldwide demand. This gives us even more clout in negotiations.
3) Schwartz kept us afloat during negotiations. The last straw was the LYFT deal. That showed we could keep this going forever if ADS (or some other company) wanted to keep playing games.
Usually companies like MRS would be bent over a barrel when it comes to negotiations but as you see, not so this time. Just look at the farce of a deal offerred to MRS back in Sep 2017. All a game to try and frustrate shareholders towards Schwartz. This would then help them steal what MRS had in a cheap takeover scenario. Everyone was likely playing the long game, as they probably figured they did not want to do anything until the 2020 US elections were settled.
WELL, TIMES UP!
Let's see what kind of deal we get. It's funny, I hear a chicken, but I smell steak :).