red october:secong asia project., page-2

I fail to see how this is going to add value to shareholders?

First ROS will have to raise either debt or equity to purchase the project (most likely equity), thus diluting existing shareholders. Given a current market cap of circa $10m, even raising $2-5m via equity will significantly dilute holders.

At this point ROS holders will own 100% of the Silver Project, but then they are going to spin it out into another new company. At this point new shares will be issued to new investors so instead of ROS holders owning 100% they may end up with 50 or 75%.

It seems like a great way to create 2 companies so that the directors can earn twice the fees, all without risking their own money.