Bone is actually correct. As they are the majority shareholder, they are legally allowed to claim the revenue and earnings (as has been done almost every quarter when the companies were reporting). Newlook doesn't have any revenue to speak of.
The troubling issue with the loan forgiveness is that even if WLSA becomes the majority shareholder of Newlook, there is no revenue stream. One cannot just make statements such as "other companies with 20million shares outstanding are trading for much more than 6cents". Obviously the key is the earnings. Not the revenues, not the assets, not the shares outstanding. At this point, neither company has revenues nor earnings. Until this visibly is changed through progress towards that end, the stock will remain in its current (or lower state).
Bottom line........ until the plant is in the construction phase, we're sitting here in a HOLD mode.
The other troubling issue is when one currently values the stocks Newlook owns, even if the entire stock is transferred, it still will fall far short of the funds transferred from WLSA to NLI:
1. 30m WLSA @ $0.07 = $2.1M
2. 20m NLI @ $0.15 = $3.0M
3. WLSA currently has $1.4M invested in NLI stock already from an earlier purchase @ $0.40/share.
4. $5M loan plus 18% interest = $6M
5. Item 1 + Item 2 + $0.75 loan payment = $5.9M
6. Item 3 + Item 4 = $7.4M
7. Comparing Item 5 vs Item 6, there's still quite a disparity. There will have to be some other significant assets that will have to be transferred to be a "Fair Deal" for the minority shareholders.
AI
