Anyone dare to discuss the financial terms of this deal?
Any acquisition specialist in the house? I'm not
From the NR we know.
Purchase price
10.5M$ paid in shares (10,500,000) to acquire DL
1M$ to be paid in shares if 2016 revenues target is met
Plus : Cleaning up the balance sheet, i.e, paying owed amount to management shareholders and non-mangement employees
2.5M$ of shares for debt with vesting conditions
Management shareholders : 25% after 6 months, 25 % after 12 months and than the remaining after 24 months
Non-mangement employees : 25% after 6 months and the remaining after 12 months
1.7M$ cash for debt over 9 month
Former management/employess accepted to be paid at 60% in shares and 40% in cash.
Acquisition cost
Deemed acquisition cost :
10,5M$ + 2.5M$ + 1.7M$ = 14.7M$ + 1M$ if 2016 revenue target achieved
1.7M$ out of 15.7M$ paid in cash (10.8%)
Adjusted acquisition cost at announcement date :
10.5M x 1.35 (closing price that day) +2.5M$ +1.7M$ = 18.375 M$ + 1M$ if 2016 revenue target in paid
Adjusted acquisition cost at closing, what will PTK share price be on May 10?
What did we get:
2.6.M$ revenue/year company and growing
40% gross margin, i.e, 1M$
Non-profitable bottom line (yet)
Expected to be profitable in 2017
Deemed acquisition cost (15.7m$) / 2015 sales (2.6M$) = 6
Is 6 good considered that DL was financially distressed?
50 M$ invested in DL since 2000
How much cash went to hard-assets purchasing (building the fab and upgrading all equipements) and what is the fair value of all these assets ?
We don't know it but it should be discussed within Q2-2016 financials.
Deemed acquisition cost (15.7m$) / Fair value of assets (XX$)
Food for thoughts
