The big unknownThe big unknown is just how much cash will Newco get?
The presentation uses $20 million, reflecting total transaction costs and debt repayment at $10 million.
But is that realistic, considering GXE had $15 million in debt alone last quarter?
What if Newco only gets $10 million, or less? That would change the equation drastically.
Until GXE puts out the full information circular on the transaction, anyone buying today is doing so with only partial and questionable information.
I had actually considered buying some today, but then gave my head a shake. Why would I buy without knowing exactly what I was getting, and why would I buy knowing I will be forced to take shares in a company run by the same folks who destroyed GXE's share price.