Omagine

Company has signed a Development Agreement with the Government of the Sultanate of Oman. Omagine Owns 60%; Sultanate Owns 25%; Consolidated Contractors Owns 15%. Project to be developed on 245 acres of beach front land on Gulf of Oman. The estimated cost approximately $2.5 Billion. BNP Paribas To Lead Construction Financing Syndicate.

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Re: A Random Thought ....

Omagine

almost 9 years ago

in response to AltonG's message

Hey Alton, good point that the land is being given in exchange for shares in the LLC. I was thinking of the land as more of a gift, which of course is completely contrary to Omagine's argument as to why the value of the usufruct rights should go on the balance sheet! Thanks for correcting me. I agree that a Shareholders Equity account such as Paid In Capital in Excess of Par or something similar would make sense. Reporting the huge earnings per share will have to wait until they actually start making sales.

Perhaps the accountants are arguing about the valuation? If you use the $718,614,000 value, then RCA is paying $1,082 per LLC share. That compares to $94/share for the shares RCA and CCC will be buying with cash. The accountants might want to be more conservative.