This deal appears very soft. Almost 11 million shares at $0.15 each - surely this sized parcel should attract a premium to the share price. And a board seat - Why? Cheapest board seat going around for a company of this size.
The restoration group has "net assets exceeding US$200 million". Not exactly a global player or for that matter a big player in Japan. No mention of why BOS has chosen to get these guys involved or what exactly they will bring to the table.
Yes, opening up new markets is important...but surely actually having a product to sell is more important. The focus should be on developing the products (ready to market) and getting the share price up before looking for this sort of investment.
Is the extra cash required? The rights issue and cash at bank appear to be sufficient by themselves. Just adds further dilution and makes it worse for option holders with the 31 Dec 06 expiry date looming large.
Once again with BOS I am having a hard time working out what the stratgey is...still a big believer in the technology but corporately my patience is wearing very thin.
BOS Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
