Post by
Adonis1411 on Sep 26, 2023 11:38pm
Quick Math
Shares outstanding - 125,726,597 (6/30/23)
x Offer Price $0.40 /share
Equity Value $50,291,000
add:
Interest bearing debt 6,250,000 (6/30/23)
Lease liabilities 7,587,000 (6/30/23) -> bullsh*t IFRS "debt", not real debt, but lets include
less:
Cash (2,153,000) (6/30/23)
Enterprise Value $61,975,000
Headline Enterprise Value per the press release - $77.7 million. Implied 4.1x multiple, suggesting ESN was doing $19 million of EBITDA.
So - why the giant difference between calculated EV and press release EV? Almost $16 million (or 1x EBITDA). That's a lot of transaction costs for Peters and Fasken!
I'll bet there's $2 million in there for Peters; $1 million for Fasken, and the remaining $13 million go straight to Management for change of control payments, accelerated vesting on RSU's and other stock based comp, and other grift.
Management gets $0.40 a share + 13 mil; shareholders get $0.40 a share, akin to 3.25x EBITDA.
This is why ESN was cheap but never a buy. Buyer beware fellas. Not all shareholders are created equal.