Ok, lets look at Shareroot, a company that has falling income, a six month loss of over $400,000 - This even with increasing customers - Yet the Management of MOO valued it at $7m.
For this the current owners get 140m shares, now if we have have the post sp open between .05 to .09 they immediately increase their value.
Lets see how many of these shares are sold after consolidation.
IMO this deal is only to line their own pockets without taking any risk, again in my opinion all the risk is held by current shareholders.
The MC of the company was at least double its present value before the announcement re Shareroot, so the market doesnt put much value shareroot.
Also because MOO are not going to sell off current tenement holdings the incoming shareroot holders gain a additional benefit from property which technically was paid for by current MOO shareholders
DYOR
MOO Price at posting:
0.2¢ Sentiment: Hold Disclosure: Held
