I really don't understand...
There seems to be lots of excitement that INFT will multi-bag as a result of a possible RTO but it doesn't make sense to me... if INFT has an mcap of 2m for arguments sake & the other company one of 8m for example, it seems reasonable to expect the new company to be worth 10m, HOWEVER surely the terms of the RTO would alot INFT shareholders 20% of the new shares as this is the value of their contribution? Hence if all goes well the best INFT shareholders could expect is the same monetary value as they have now. In practice once reality hits home following the RTO without big gains being materialised is there not a strong likelihood of a mass sell-off and subsequent DROP in SP???
The other thing many LTHs often quote to instil confidence is the 'fact' that Gerwyn has supposedly invested half a million of his own cash... am I missing something but if you were owed that sort of sum by a company in terminal decline (as INFT appears to have been), couldn't converting a loan that you have no chance of otherwise getting back into shares simply be a last ditch attempt to at least recover a portion, however small, in the event of a RTO? ...as far as I can see he hasn't actually put in any cash whatsoever! ...Also this man runs 18 'companies' - what's that all about?
Finally a RTO is supposed to be very straightforward and quick - if he was going to do this with one of his many companies as widely claimed on the BB why wait until suspension - this could have been completed months ago which raises the question why not???
When I read up on RTOs a while back I got the distinct impression that the only advantage to the listed shell company was that they could recover at least some value to otherwise worthless shares.
Would be grateful if someone would enlighten me as I've clearly missed the plot on this one!
TIA