With the Tax Incentive deals, because of the union of ownership between GLER and Hawk Manufacturing, Inc., anything that either one of the companies do that benefits from any deals, automatically carries a valuation involvement attachment with them to one another. I’ll talk more about the $17 Million Tax Incentives later in this post, but I think there are some things that first need to be understood. If you are not familiar with what I am about to discuss, then it might be a good idea to link back a few posts where I had elaborated a bit more on the origin of what I am about to discuss.
First, the Share Exchange Agreement deal is for Hawk to bring acquisitions into GLER to enhance its shareholder value which in-turn enhances the value of the 214,027,096 shares that are owned by Hawk. I repeat… which in-turn enhances the value of the 214,027,096 shares that are owned by Hawk.
THIS IS HAWK’S MOTIVATION TO PUT THE ACQUISITIONS INTO GLER!
Personally, I believe that the GLER & Hawk PRs & filings are true. I have no reason to doubt them. Any company that has credit good enough to be awarded a $10 Million Line of credit is very credible whether anyone likes them or not. I believe that investors are here because of what GLER and Hawk are doing and the still positive direction that they have confirmed to be heading. They are two separate companies (for now) of which is why a Share Exchange Agreement was completed much like a ”partial merger” where each obtain ”partial ownership” of each other… for now.
Another portion of the deal, which was also filed with the SEC, allows for Hawk to buy as many shares as they like under .02 to mirror any shares issued to ensure that Hawk always maintain a 20% interest minimum which always keeps Hawk motivated to place acquisitions into GLER that Hawk secures and fund. This is why Hawk obtained the $10 Million in funding and is allowing such to be used for GLER.
Keep in mind, GLER is a fully reporting stock that files audited financials with the SEC. These are the key documents that we all need to read for starters:
Now let’s talk more about the $17 Million Tax Incentives that’s in the mix with the companies. Within the previous GLER/Hawk PRs, they mentioned about creating jobs and doing the things necessary to be able to receive Tax Incentives. Now we know how much. The companies stated that HAWK is negotiating incentives at the state and local level that could total more than $17 million in tax incentives and other direct benefits that could top more than $40 million over the life of the company. Read the PR below again to see it for yourself: http://ih.advfn.com/p.php?pid=nmona&article=59127679&symbol=GLER
To help you better understand how these Tax Incentives work, first read the complete article below to see how the St. Paul bakery is an example for tax incentive success. Then read the following article to see where big Tax Incentive deals cited where Illinois offered $275 million to keep Sears and $100 million to hold onto Motorola Mobility; New Jersey dropped $250 million to keep Prudential Insurance and $102 million to retain Panasonic North America, both in 2011; NCR got $109 million in incentives from Georgia to leave Ohio in 2009. There’s even much more cited within the article which clearly explains the job factor that GLER and Hawk keeps referring to. Then read the following article to see the examples below on how Tax Incentives worked out for Lions Gate Entertainment (NYSE: LGF), Time Warner Inc. (NYSE: TWX), and TVB (HKG: 0511).
http://emerginggrowth.com/posts/state-tax-incentive-packages-leverage-film-production/06/20/2013 In North Carolina alone, film and television production companies such as Lions Gate Entertainment (NYSE: LGF), Time Warner Inc. (NYSE: TWX), and TVB (HKG: 0511), took advantage of the state’s movie and television production incentives. The economic impact of the industry cannot be underestimated within the state. Over 8,500 jobs and $206.7 million in wages are directly related to the industry in the state. In 2011 alone, 24 major films and five TV shows were filmed in the state including The Hunger Games, Journey 2: The Mysterious Island and Homeland. Tax incentives in the state include a refundable tax credit equal to 25% of qualifying in-state production expenses if a minimum of $250,000 is met. The state has a $20 million per feature credit cap.
To add, as I had previously posted, the CEO of Hawk, John M. Ragsdale, is a GSA Contract Holder which means that GLER/Hawk will always be in line to make sure that a certain amount of government contracts are awarded. Read below as further confirmation of such for the company in a response I made to sprtcrdlui …
This is huge DD and is much appreciated. The importance about the 23 Government Defense Contracts that were obtained by Hawk is that it adds another level of huge credibility that what they are doing is very real. This means that GLER must be credible or Hawk would not had wanted to have done a Share Exchange Agreement with them to own 214,027,096 shares of GLER. In my opinion, Hawk must really know what is coming out in the future or they would not have ever done such a deal with GLER to own so many shares.
AI
