NEXG vs SGNLWhen you take into account the debt and cash both companies have.
Both properties are being valued at right around or just above $50 million each.
Why are SGNL shareholders getting 29% of the newly merged company, and NEXG shareholders getting 71%? Almost 2.5 times as much?
When you factor in the 75 million shares SGNL will sell before, or concurrently to the transaction, current shareholders will get less than 29% of the newly merged company.
I can only guess that SGNL was in a much more desperate negotiating position.
I would have thought that SGNL shareholders should have received much closer to 50% of the merged company. But that is just me.
GLTA