Post by
cigarbutts on Dec 26, 2018 2:55pm
More for the Feebleminded BOD of GZZ.
Let's say fees and expenses to pull this off are $1M. You agree to split it with RZZ.
Let's say your willing to trade your 5,605, 246 shares of RZZ for 5M shares of RZZ for your stockholders, and you create the SpinCo for all the other trifilings with $1M in cash to pay out to Mullan and his minions in salary and consulting fees over time, in order to "manage" these royalties.
RZZ gets to reduce shares outstanding by 605,246, worth about $5.5M for $500K of merger expenses.
BALL is a genious!!
GZZ shareholders get 5M shares of RZZ, and the SpinCo trifles. GZZ today is worth $32M. 5M shares of RZZ is $46M Can valuation for GZZ shareholders. An increase of $14M or 43%.
Mullan is a genious too!!
Forget those I-Bankers in Canada and their fees! I will certify the fairness opinions with a the same BS letter(s) we see all the time for FREE!!
Comment by
calculatedrisk3 on Dec 26, 2018 4:41pm
GZZ could distribute all of the RZZ shares that it currently owns to its shareholders. No special deal with RZZ is needed. I doubt it happens though.