How the hell Royal Life Centers or some other 20M turnover company can be bought by debt ridden miniscule Enthema where Market Cap stands at 300K currently? Where Enthema gets money from? Not much to sell. Who will give the collateral? Ridiculous! Unless...
Unless Enthema actually can...
What will be payment? It can pay with its shares. Not these common - those are worth (almost) nothing at the moment. I think the big company will prefer the other ones (That is why we call them prefered ;). It means Ethema pays with a control change. This will be R/S basically and we all know it happens from time to time. Advantages are many in this case. The big company is going public cheap. Instead of buying some shell in mineral sector it buys in the same business so no profile has to be changed. No confusion. Additionally there is consolidation. We know that nothing pays so well as monopoly. And Leon instead of being CEO of nearly bankrupt company will get maybe even a position in that new entity. Although better not in operations. As we see he is not so good in operations - costs are much higher than sales at the moment. Remember this is in the midst of the drug crisis and so many billions more are planned to spend to deal with the problem.
I think Leon could became ... consolidation manager. As we see from previous GRST PRs there other plans to buy other companies in the field so more consolidation and more monopoly. Future shareholders should gain theoretically.
At that moment the toxic debt made this stock so ridiculous but that could be maybe just to present Ethema as clean company (no debt). If this R/S happens it will be irrelevant anyway in the future.
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