Replies to post #9152 on KeyOn Communications Holdings, Inc. (fka KEYO)

[Poptech]

lesn: There is so much rich material in your post, I don't need to link to anything else. You can just jump through the bold areas to get a quick read.

Let's make a very conservative assumption: All the enterprises under Nantworks are worth $10 billion. Very conservative since he valued NK at about $3 billion.

Now let's take one line from your post (which your contributor Nitti disagreed with in his article):

However, at least 80% of the consideration must be paid in voting common or preferred stock of the acquirer, eliminating some flexibility in the type of equity consideration paid relative to the forward triangular merger.

That means in this wild scenario, where KEYO becomes the parent to all of Nantworks, that KEYO must supply $8 billion in stock, based on market cap, to Nantworks shareholders.

KEYO does not have a $8 billion of stock. If it still had its market cap when it existed, and it owned all the stock in the outstanding (no stock for you), KEYO can only pay Nantworks $520,000 in shares.

That is only part of the many problems supported by your own post.

Link: http://investorshub.advfn.com/boards/read_msg.aspx?message_id=117723187

[HMB2010]

Interesting