Could somebody please list in bullet form the major financial points and benefits of this agreement?
It all sounds very fuzzy. RLFTF pays a non refundable $1M just to do the deal with ACER and RLFTF also puts up a $4M loan to ACER. ACER is a $4 stock on nasdaq. So we are now $5M in the hole to ACER who has 22 employees and lost $28 Million last year. Naturally, ACER stock is up because they just got a lot of cash. Why not deal with a larger company? The only way I see this making sense is if RLFTF is taking over ACER.
I am the first to admit I do not understand all the details. Could somebody please explain in simple bullet form how RLFTF does well with this deal and what it gives us?