FormerXBC Inc XEBEQ

These people didn't sell to Xebec because...

[Tan4646]

they wanted to just make a few bucks fermenting cow s..t into natural gas.....

NEW STAGE IN GROWTH

“Our businesses are highly complementary which places us in a strategic position in the hydrogen economy. Together with Xebec, HyGear will be able to accelerate further growth and create opportunities for our customers, business partners and personnel worldwide,” said Marinus van Driel, CEO of HyGear. “We developed our company with a highly motivated group of employees and the continuous support of Oost NL and a loyal investors base, trading our share certificates on NPEX stock exchanges. We are thankful to Oost NL for providing financing in several rounds, strengthening the operational execution power as well as building solid governance structures. This has created the basis for our next steps together with Xebec.

“Ultimately, we believe that hydrogen will be the dominant gas and energy carrier of the future. HyGear has been able to build a growing and profitable business by first selling to industrial customers and then using the same technology to deliver solutions to the emerging hydrogen refuelling industry,” commented Kurt Sorschak, Chairman, CEO and President of Xebec Adsorption Inc. “The technologies of HyGear have the potential to be used in renewable natural gas and hydrogen installations and we see value in cross-selling these solutions throughout our service companies in North America and our combined customer base.”

[ferret_ca]

No they didn't sell for the cow sh  it , they sold to xbc because xbc was willing to pay them darned close to 10X sales for their company. cheers ferret

[Tan4646]

Thanks ferret for that perspective / info, so the original @10m shares at $6.03 per share is now 10m shares at $1.93,  then the adjusted purchase price is $112M  or 7.2x sales, sounds much better if buying shares of XBC today. but unfortunately the allocated % of my portfolio is full. 

[Tan4646]

not to belabour the point you made but from the press release , HyGear generated €11.4 million of revenues, €3.4 million of EBITDA and €2.5 of operating income in 2019 and is expected to experience double-digit annual revenue growth from 2019 to 2021 and maintain strong EBITDA and operating income margins Multiples paid for HyGear represent 8.8x 2019 Revenue and 29.3x 2019 EBITDA

[tony08]

Good post Tan, i took note of your numbers.... You finish your post saying: "I guess the question is, what the hell is a share of anything really worth in the short term." I think that's a good example of how it's always risky to buy for the short term.