@mickeysea - part of it will be cost out - there are going to be admin/finance/sales and marketing overlaps between both companies so some of those people will go
suppose the main question is how much and where does the next round of funding come from.
$18.1M raise + $15.5m bank only pays the ~$34M due the exiting LIFX cornerstone got a further $us13M to pay to the trade creditor though that looks like it can be jigged and poked with LIFX sales
I would think they need another ~$20M-30M at least as a safe float
deal pricing is contingent on 5day VWAP pre shareholder vote so corporate finance backers should be in the market supporting shares until then. i doubt it will fall below 8c at any point for too long given that
~55% increase in issue base so far -for negative ebitda priced on expectation LIFX can boost earnings
Fair value would appear to be around 5c until/unless there is confirmation of OHM/LIFX improved earnings. Actual SP though i doubt will approach that during the deal phase if at all
From a strategic viewpoint for the individuals on both boards the deal makes excellent sense to me - using overvalued BUD paper to fund another 'brighter tomorrow' and as forecast would washout market focus on Ohm shortfalls - and the lure for LIFX was to provide an exit for LIFX's largest investor and liquidity + market incentives for their key execs.
will be interesting to see what the synergies may or may not occur for the combined group of sales lines
got to admire a CEO who sells at 22c into his own bs to unsuspecting nubs - to buy back in at 8c on a diluted base he creates for himself
DM will be one v rich individual by the end of his career
BUD Price at posting:
9.4¢ Sentiment: None Disclosure: Not Held
