Re. Restructuring.
After giving it some thought and assuming that the 'gist' of Stocky's conversations are not completely false, I propose the following scenario for discussion.
There has been talk in the past of a spin-off of the new pharmaceutical division. This is the most likely candidate for the 'restructuring' focus. Such a spin-off will not be necessarily dilutive, at least not to the parent company. If it does not dilute DNAG then it meets Stocky's description.
A spin-off quite often includes the issuance of shares in the new entity and includes a portion of those shares for the shareholders of the parent company. The distribution rate is up to management. It could be one for one (one share of the spin-off for every share owned in the parent) it could be one for ten, it could be ten for one, it could be anything.
A spin-off also allows for the sale of newly created shares of the spin-off in order to raise funds. Quite often there is an IPO for the new entity and a large fraction of the ownership of the new company is sold to the market in exchange for cash.
The spin-off will take with it certain assets of the parent company commensurate with the differences in their future directions. If they spin-off the pharmaceutical division from the Ancestry/Forensic division then whatever patents and intellectual property associated with those missions will be divided accordingly.
Existing shareholders will continue to own the same share of the parent company that they did before, but it will no longer have the same assets, goals or growth potentials. On the other hand it will not be burdened by the costs of the other (now spun-off) programs and may be capable of supporting itself via it's current revenue stream.
Shareholders will also obtain shares in the new entity (at an unknown exchange rate). This is because the assets of the new entity belong to them as owners of the parent company. However, there will be a large and significant dilution that occurs as the IPO to generate revenue occurs.
SO in summary, a spin-off satisfies the clues that we have obtained. It is certainly a restructure. It will certainly generate financials (for the spin-off). It will not be 'toxic' or dilutive (to the parent). Last but not least it explains the 'excitement' reported by Stocky regarding the GREAT sales of the Ancestry/Forensics.
Just a little fodder for discussion.
regards,
frog
AI
