TheGlobe.com Inc (TGLO)

[Toxic Avenger]

I hate to always be the voice of reason (though it's nice to have some company Ed), but ....
Let's looks at Delfin's options.

They can leave the share structure as is and transfer all their assets and liabilities into TGLO (assuming their banks let them). Despite some claims that those net assets are in the billions, they have been paid for entirely by the private capital invested in Delphin, which certainly doesn't exceed a billion dollars. Let's use $300 million (mostly coming from Talisman) as their NAV.
In this first scenario, they transfer $300 million in net assets to TGLO. That's great for current shareholders of course, except for Delfin. They used to own 100% of the assets, now they only own 70.9% of them. So effectively, they have given away $90 million to other TGLO shareholders. Now they do a secondary offering. They have about 100 million shares they can sell which represents 20% of the company. Assuming they're trying to raise at least another $300 million, they need to convince outside investors that a company with $300 million in assets and no prospect of revenues until 2021+ is worth $1.5 billion. That's a difficult sell.

The other option is to do a reverse split. Let's assume 1:100 for argument's sake. Instead of 312 million shares, Delfin now has 3.12 million shares. Of course immediately following the R/S, Delfin still owns 70.9% and other investors own 30.1%. But now they sell their assets to TGLO for equity. $300 million in net assets for 250 million shares. Now they go to the secondary market and sell the remaining 247 million shares in the A/S for $2 or more (depends of course on outside investors), valuing the company at $1 billion or more. However now those new investors own 49% of the company, not 20% and they've contributed significantly more than $300 million to the balance sheet.

The advantage of the first scenario - a lot of love from current TGLO holders. The disadvantages - less money raised, dilution of private assets, maybe a lawsuit from Delfin's investors (Talisman can't be happy).

So .....