Toggle to the financials section and look at the balance sheet. SAGA has 762 million in cash. This is the company paying the 250M to buy the two ENZC subsidiaries. These types of companies (SPAC) raise funds and list on exchanges to have a vehicle ready for business. They may not trade much because they may not have business activities yet. In the beginning the company may be mostly a cash holding company. The cash comes from from the investors of the SPAC. The business activities will start after they make their deals. They can then buy other companies, licenses or other assets and are ready to transact quickly.
One part of this news i’m looking for clarification on is how to 250M will be paid. It does not specify it will be all in cash. “The value of the transaction is $250,000,000” It could end up being a combination of cash and stock paid to enzc totaling up to 250M.
It could be enzc gets 100M worth of stock in SAGA and 150M cash totaling to a value of 250M. I made these numbers up to illustrate an example scenario.
Maybe shareholders end up with shares of SAGA as part of the deal. This way shareholders retain value of the ITV and IPF assets by owning shares of the new owner SAGA. And also benefit with their existing ENZC shares because the company is more valuable with a large sum of cash on the ENZC balance sheet.
The good news is the deal is set to close in about a month so we should not have to wait too long to learn the details.
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