CBTEWith the sale of our IP to CBTE BOS gets 2.6m CBTE shares...

CBTE
With the sale of our IP to CBTE BOS gets 2.6m CBTE shares current value of 2.6m @ US$0.50 = US$1.3 m (CBTE has been trading at about US$0.50). This holding is diluted by BOS handing over 106,176,619 shares to CBTE as part of the deal. [Note that the directors are putting a value of US$1.00 on the CBTE shares meaning a value of US$2.6 for the IP plus the shares]. CBTE has 8.2m shares outstanding at the moment.

Should the merger between GL Biochem and CBTE go ahead the development of the IP may generate revenue to BOS through our holding in CBTE. I appreciate CBTE and GL Biochem will bring further dilution, but I could vote for this.

However...

Resolution six. Convertible note deed.
The AGM asks us to vote on taking the convertible note deed with Empire Equity with the ‘intended use of the funds raised to fund transaction costs for the RGM Group acquisition …’

In the RGM deal we hand to Chaimsbury and Empire over 1,229,223,177 shares (that’s 1.2 billion). Diluting existing shareholders (excluding Empire) to 8.71%. That is a dilution of our shareholding of 90%

The RMG merger will dilute current shareholders by a whopping 93.28% .

On top this there’s the directors’ et al claim for 5,000,000 shares to progress the merger. Plus a capital raising later of at least $5m.

Excluding the director’s remuneration, IPO and Empire holdings, shareholders would be reduced to owning 6.1% of our company. So what’s on offer? Well, RGM. But what’s that? We’ve got no info on RGM. Where’s the due diligence, an annual report, financials? There’s nothing. And BOS is asking to dilute my holding by over 90%. I will vote NO to resolution six.