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12/02/19
12:51
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Originally posted by William Roth
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What’s the total production capacity of B&P ?
Based on current fugures WHA is proposing to pay a multiple of 40 plus. That is, it will take 40 plus years to pay back at a minimum, Absolute madness.
Based on future earnings quoted the pay back period is 20 plus years.
Mind you the company currently has close to zero revenues. The proposed asset doesn’t even cover loan repayments.
My question is why make the acquisition , it only puts pressure on the SP.
The only way they will pay down the debt is by another capital raise which puts further pressure on the SP. how else will it pay down the debt?
This is a very bad deal, only to brag about vertical integration strategy.
Private equity placement is on the cards later this year to pay down debt. The narrative won’t be a question of dilution then , it will be all about paying down debt.
Mason is the only winner out of his deal and I wonder why. They payed 80 million for 80% stake 18 months ago and offload it for $133m
DYOR
WR
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Yes I agree seems a big risk, not sure what they have to gain. I could understand if they had SAMR approval and sales were exceeding all expectations and they had a ton of money in the bank?
Howie