As Per Alfie:
I view this as being very good news for the SPNG shareholders, albeit perhaps not for the same reasons that many others do.
I have no problems with the company making investment into other companies. However two things bothered me about this particular deal.
The first was that the two companies could never really agree on suitable terms for the investment and secondly I was definitely not enamored with the people involved on the GFGU side of the ledger. They are just not the type of people that I, as a SPNG shareholder, really wanted to be involved with.
GFGU is not a stable company at this point in time. No real revenues and no stability at all. The stock remains quite volatile and this makes the casting of an investment price a very tricky situation because what appears to be a good deal on one day may not look so good the next.
Just look what happened to the GFGU stock price recently to see that is has been all over the place. This is definitely not what you would like to see in a deal where you are investing in return for a sizable stock position.
So bad fundamentals and questionable people involved all added up to a very risky deal for SPNG shareholders and that is whay I say, good riddance to the GFGU deal.
AI
