Re: The 34.4 million
JMO, with the formation of Newco, Zenith (apparently soon to be Zenith capital Corporation) will still have it's existing share structure of 103 million shares. Zenith will own the RVX preferreds as well as 100% of Newco which will be 34.4 million shares until Newco does some sort of financing or IPO's at which time Zenith's ownership of Newco is diluted.
I was never a big fan of the RVX/Zenith split as I think it confuses the market as to who owns what IP, which was further exacerbated by the IP swapping that has gone on since the split. I do however think the Zenith/Newco split is a good idea as it protects against dilution of the ownership of the RVX preferreds as Zenith will likely now require almost no new funding since it becomes basically a holding Co.
I imagine the dollar per share value of Zenith would now currently be ascribed to be roughly 34 cents per share derived from Zenith's ownership in Newco and 66 cents per share derived from ownership of RVX preferreds. Personally I would have thought the IP being assigned to Newco would have been valued higher and the RVX preferreds valued lower (as they currently are non performing) but I would speculate that there is already a funding arrangement basically in place for Newco and that the 34.4 million at a dollar will just be balancing the ownership of Newco once it is diluted post funding. Again just my guess.
