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Re: DONT SQUEAL post# 46800

Thursday, 12/14/2017 1:21:37 PM

Thursday, December 14, 2017 1:21:37 PM

Post# of 68548
DS

If LRS hires a banker with two brain cells they will tell LRS that ECOS is worth 1 to 1.5 times 2017 revenue which leads you to a number of $1m (the current trading price). All of the other stuff is on the come you would never pay full value for.

If I were advising LRS I would offer to acquire 100% of the ECOS shares for $1m plus an earnout payable over 5 years (payable in cash or shares, though likely cash) based on the profitability of the digester post acquisition. The earnout would have a min-max formula with the min set at $500k and the max at $4.5 to $5m.

I really don't think LRS should or would want the public ECOS shell. Just my opinion.

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