Member Info for Oilswellthatends

The value of a cash shell co to target co is cost of listing plus cash, so Bou is worth £0.5m to £1m depending on what cash is left. So why would it bag from its current £3m market cap? Interested in your reasoning.

Slowly, genuine question re “Coeur”. What is the link between Couer Gold Armenia and Coeur Gold Holding? I can see George Richmond involved in both. AG is current president of CGH, was AG also involved in failed listing of CGA in Singapore?

Agreed, it’s stock market listing might be worth £300k plus cash balance. We know there was £843k cash at 30 June, we don’t know how much is left. Say total value £1m reducing over time. Compare the current market cap of £3m.

Chris, seriously if you do some research into AGs web of private companies and associates, it seems unlikely they would want the public scrutiny of a listing. Who knows what AG is really up to?

A cash shell co has little value except for its cash balance. It might create value in the future but in the short term the target co shareholders won’t be giving away existing value to shell co shareholders.

Placing at 1p according to SP to be announced today.

Nobody really knows what Antos’ motivation is here but does it necessarily align with shareholders? Look on companies house at the other companies and people he is involved with and make your own mind up. Also what are motivations of the Bod, are they just paying themselves until delist in April?

Seriously?? Spend a few minutes researching this company at companies house, it’s directors and associated companies. Tells you everything you need to know!

Or alternatively you could lose everything if there’s no RTO, or most of everything even if there is a RTO. Why would the potential target co pay £3m for a shell co with probably little cash left? Value is probably nearer £0.5m. Fair enough if you’ve taken your profits on this earlier but otherwise this is very high risk. Good luck.

For a bit of balance on this board, there’ll likely be a consolidation on any successful RTO, say 100:1 or 250:1. Then the share price might get to 1p or 2.5p !

Apple, no, in a reverse takeover the listed shell co buys out the target co by raising new share capital, so the target co is reversed into the shell and relists under a new name. Hence the shell co has value equal to the cost of listing plus any residual cash. Any short term gain is to the pre-existing owners of the target co although the original shell co shareholders can gain in the longer term with a successful growing business.

A-milli. How would a RTO be financed without a further share issue? That’s the way RTO of a cash shell co works. AG has bought the right to purchase the potential RTO shares at 0.01p.

Just trying to encourage people to think through the valuation . I’ll keep watching over coming weeks or months. Good luck to you.

But less subjectivity in valuation of cash shell, ie cost of listing 300 to 500k max plus net cash. Otherwise target co would IPO.

Answer depends how quickly they are burning cash raised, but possibly 20% of current market cap, and falling as cash is spent?

Venn was valued at £4m in the RTO which was the net asset value plus the cost of listing, and which was roughly double the market cap at the time of suspension, hence the near doubling of share price on restoration. What’s the net asset value of BOU compared with its market cap?

Bought into a shell co (FRI) for the experience and learned that there are no quick riches to be gained for old co shareholders , got out at break even after takeover . Over time it can go either way, in this case new co CPT has lost about 80% of value since RTO. Depends on the takeover target co so it’s a punt on BOU’s takeover if any.

There is no contrarian view here so I thought I’d pipe up for some balance

The valuation of any shell is the same ie the cost of listing plus net cash. In the short term the beneficiaries if any are the existing shareholders of the target co when new share proceeds are paid over, although further value may be generated in the longer term for the original shareholders. Think about the shell co valuation vs current market cap.

Think about what’s the valuation of the shell co, what price the fund raise and who benefits from the RTO ?