I remember that Lizard lounge was rumoured to be well >$250m and as high as about $400m. The expectation was then slashed and slashed until eventually $68m (which I take as $62-63m net of transaction fees).
All the book value stuff is just a guessing game. From experience when a company is in trouble and a forced firesale of assets occurs (especially when its related to debt) shareholders almost always will get nothing out of it. Any buyer is just going to buy the debt, force the company into liquidation and take everything. Its harsh but its just business. After all if I was a buyer I would also want to pay the lowest price possible.
Asset sale (even if its firesale) do take time to accomplish so I am leaning towards a very steep discounted equity raising coming up. This case would mean dilution ... and I suspect that KZL may double to treble shares outstanding.
Anyway more important thing is that hope KZL relists again. How they do it ... lets say at least when they do relist something is better than nothing.
Would be ashamed to see KZL go under.
KZL Price at posting:
12.0¢ Sentiment: None Disclosure: Not Held
