RE:RE:RE:Questions about Persitence GroupPG is going public which I with MJ holding the majority of the shares is the same as spinning out a subsidiary.
The fact is that it's going to be publicly listed.
A majority ownship which is what MJ will still be afte the public listing is no different than now except we own 70 % now and just over 50% afterwards.
Its when equity ownership drops below 50% that you are referring to.
According to Weibull, PG would have 80 m shares post consolidation and we would own just over 40 million of those shares.
That means that the equity raise must be restricted to no more than 25 m post consolidated PG shares in order to stay within the 50+ % ownership by Majestic.
If the IPO raises $75 million US, that must be done with less than 25 million shares of post consolidated shares o/S .
That's $105 million cad or just over $4 per share .
Normally, the equity raise is at a discount to the makrket value..say 15 %.
When it is finally listed on the HKEX, its share price will rise significantly in order for the placees to make a profit.
Lets say 25% above the IPO price which would be about $5 per share.
So, MJ market cap at that time would be 40;m shares X $5 = $200 m in CAD