TON Strategy Company (TONX)

[TenKay]

There could be a number of reasons why they did this. The most obvious was that AGP couldn’t move the stock it wanted to and had to offload some and the only viable option was for SC to use what was, in effect, AGP’s money to buy it back. The refund was to AGP, not Verb.

It could have been the only way to keep this from going sideways...and perhaps keep AGP from dumping it in the market.

As for SC...they are making out well at $25 million even with only $11 million of it in cash...that is close to 1x sales on the cash portion alone. It’s not like someone else was willing to pay that for them...or would come in behind Verb if it failed....Verb paid a premium...if evidenced by nothing more than the fact over $24 million of the $25 million “value” had to be booked as “goodwill” on the balance sheet for the transaction.