IICP O/S Means a lot to me, too
First, NMKT China has already paid for IICP in cash. IMO, the current O/S in IICP should either be reversed split down to near nothing or retired all together.
Adding 2M shares to 23M shares does not mean a whole lot for a company trading at $0.11 WITH NO BUSINESS.
But NewMarket China is dumping $20M in revenues in to IICP. 23M shareholders just bought $20M revenues for $250,000! With $20M revenues, IICP's PPS should rise dramatically.
Let's say IICP's PPS rises to $2.00/share. With an o/s of 25M, that equates to a market cap of $50,000,000.
At $2.00/shares for IICP, that is great news for NMKT, the company.
But $2.00/share means NOTHING TO YOU OR ME. We don't own any shares yet, remember?
Later, the NMKT shareholders of record receive their shares of NewMarket China.
Now our shares are worth $2.00/share, right? WRONG!
With the new influx of o/s, and given the somewhat fixed market cap assignment of $50m, the PPS of NewMarket China plumets.
The winners? Existing, old IICP shareholders. Who, if they have half a brain, will have sold their IICP shares around the time that they reached $2.00/share.
To repeat, 23M shareholders just bought $20m revenues for $250,000. That would be typical PV: Grossly overpay for acquisitions and basically give away the subsidiary in the spin-off. A real wheeler-dealer.
