absolutely yes but ECR doesn't presently have the funds nor do they have a sizeable business to exploit the tax loss benefit. ECR needs to engineer a business partnership with another company that can provide investment funds. This issue is that the suitor cannot have a controlling stake in the company and so cannot buy out MGA from ECR because they are not allowed to own more that 50% of MGA (COT condition). They need to engineer a investor/partnership.
The possibilities however are endless and the more i think about it the more excited I get. This could be the start of something big.
If the BOD are forward thinking which I don't doubt they are. Then its very possible that they are already forming plans and speaking to prospective/interested parties and advisers about how best to monetise the impending MGA opportunity. We don't know what's in the pipeline but I suspect it will be a pleasant surprise when an announcement is made. At present we can only speculate. IMO I don't think there will be a need for a placing.
Generally none of us know for certain on what news is to come, but just feel that we might have a surprise bit of news. On that though as per usual, time will be the only thing that can give us the definite answer on that one.
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