RE:somebody check my math ?Not too sure about your math part. I find it quite hard to parcel out certain aspects of the transaction, but I think PD invested $3,000,000 for what in return I'm not quite sure. Maybe for the strategic alliance? or maybe "Additionally, the Transaction is expected to enhance margins as expenses related to rental equipment used by Precision are replaced with proprietary Cathedral tools."
The purchase price of $6,350,000 for PD's assets were satisfied with the issuance of 13,400,000 common shares of Cathedral. So, they issued shares at about $0.47 to PD.
They also issued warrants for PD to purchase additional 2,000,000 shares at a price of $0.60 a share of Cathedral.
PD is also restricted from selling common shares for awhile.
Overall, it looks like the strategic alliance can be mutally beneficial for both enities and they can market each others services, so more revenue possibilities. And, I think PD is the biggest driller here in Canada, so it's pretty good for Cathedral I think.