CGA 0.00% $1.00 contango asset management limited

I havent seen how these shell plays work, would love some...

  1. 3,281 Posts.
    lightbulb Created with Sketch. 423

    I havent seen how these shell plays work, would love some feedback to try and understand how this how this works?

    If for example Tyrian has after everything is settled
    - 2 million in the kitty.
    - plus the shell worth 2 million.

    Is it reasonable to expect any party buying the shell would need to not only pay 2 mill for the shell but match the cash in the business also?
    If they only paid the 2 mil for the shell then because of the money in the business they get their money back?

    So potententially a new business with 6 mil in the kitty.

    Also assuming that whoever buys the shell gets a chunk of shares for their money?

    After that, i guess depending on how much money they need they may do a consolidation and cap raising, but 6 mill goes a fair way usually in these specs.

    Like I said know idea how this works and would appreciate any insight.

 
watchlist Created with Sketch. Add CGA (ASX) to my watchlist

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.