Post by
youngkid on Aug 29, 2018 11:12am
RTO
So the financial statements are out and we have $89,115 Cash and $705,506 in a GIC giving us a cash value per share of $0.019. Essentially, if you take out the cash they are valuing the ability to convert this corporation to a publicly traded cannabis company at just over $900K. Does that not seem pretty cheap compared to the costs and time it would otherwise take to bring a private company public? I looked up a couple other RTOs and it looks like they investors of the shell companies typically get between $2.5-3M reinforcing that a 8:1 share consolidation would be a more suitable proposal.
Comment by
Manakai on Aug 29, 2018 3:19pm
You are correct in an 8-1 reverse split but you forget the greed factor!!