Strategic Asset Leasing Inc (LEAS)

[trader59]

The document linked today is just another update to the registration and proxy statement of RWOD. There's still not a date in it for the shareholder vote. I doubt that RWOD shareholders are going to be big fans of handing over $60M worth of stock for a company trading (barely) at a market cap of $1.3M on the OTC and that hasn't done jack lately. It is pure dilution of their $10 stock, and they can redeem and walk away if they don't like it (taking the cash out of the company treasury).

The purpose of the RS was to essentially wipe away the legacy stock from the previous business of LEAS and award the owners of ANEW (who hold those preferred shares that were to convert after the RS was complete) with the lion's share of the equity in this company. Because the CEO has voting control, he can simply take the RWOD stock and divide it amongst his classes of stock as he sees fit. He owned 30% of ANEW prior to merging it into LEAS, and I expect he'll want to own a similar stake of the RWOD shares awarded in the business combination.

I know that doesn't directly answer your question, but do you really think that you're going to get a windfall from buying stock that barely trades on the OTC from a NASDAQ SPAC wanting to buy a $1.3M company for $60M?