Post by
mlmack66 on Sep 12, 2024 7:19am
My theory on the investment
I had asked a short while ago if anyone knew of any hidden assets that Novra had thinking more about underpriced real estate. I believe it is not a coincidence that this announcement was made shortly after Dr. Barakat came back on the Board. He was President and director back in the early 2000's. Novra has a significant amount of old technology and I now suspect they have patents which may be very valuable to a private equity firm suing very large tech companies. The old Wilan company got bought out by US private equity and are suing Apple, Google etc. for $100s of millions of dollars. These companies are very private and share as few details as possible. The fact that Novra can force the conversion after two years at $0.34 is very puzzling but possibly Harris wants a large piece of the action and was not willing to do a total buyout. That's my theory, any comments appreciated.
Comment by
Ciao on Sep 12, 2024 7:49am
Very plausible. Looks like we'll need to wait till more details come out on who the private equity firm is but why give out a $12M loan (are there conditions for the use of the funds)? Why not just put in a hostile bid for the company at .34 / share which would be about the value of the loan?
Comment by
mlmack66 on Sep 12, 2024 7:57am
Possibly Harris thinks/knows the patents are worth much more than the $0.34 / share. He probably directly/indirectly controls over 50% of the current shares and therefore could defeat any takeover bid. I think Barakat is playing a huge role in this with all his industry connections.
Comment by
Ciao on Sep 12, 2024 12:38pm
Harris has about 5.4M of the 33M shares under his control. Maybe he has some influence over other shareholders as 2M shares were issued to Wegener for that controlling interest. So perhaps control and influence over 7.4M shares or 21% of the shares. In a takeover I believe you need 2/3 approval. Lots of questions on this loan which is already binding.