Shareholder Value

Hypothetically:

Market sets a value of $100 million for new company combining Hills Health and Lincor
Hills gets $40 million
Lincor gets $40 million
Investors get $20 million

Risk: The merged company does not hit performance targets and cannot execute IPO in the next 12 mos.
Reward: The merged company performs as expected and as promised in prospectus shared with investors and goes public at $100-$120 million
Downside: The merged company has to delay IPO or other private equity due to performance and Hills gives up another $10 million in diluted value of merged company.

All of these options add anywhere from 50% to 80% of the value of Hills Ltd at the time the merger was announced. Thats more value than Hills has created in any form or fashion in 15 years with very limited downside.