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Poptech

06/08/09 1:04 PM

#174214 RE: Zacked #174210

I am not sure I would say anything is imminent, but some type of exit is clearly being investigated. I don't see how the common shareholder will benefit. Take out the debt, preferred shares, bonuses, fees and there is already a difficult break-even. A reasonable market cap means someone has to get squeezed - unless the acquirer offers several hundred million in goodwill.

That equation could be very different a year from now with a few milestones under their belt. I think we need to be patient and ride the market.
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Be Confident

06/08/09 1:46 PM

#174229 RE: Zacked #174210

Zacked,

Many thanks for the kudos, however, before anyone misinterprets my post I thought I would clarify:

Should a new entity be born and acquire Neom (as elaborated upon in an old post from approx 2 months ago in which I suggested it form from funding from a consortium of companies), my speculation was an automatic cash distribution to all shareholder in exchange for "all" outstanding Neom shares.

Now the new entity owns Neom...and "all" Neom shareholders disappear. We would NOT be shareholders in the new company unless the new entity made an offer as part of its buyout, however, I do not consider it likely in the slightest.

This new entity now launches numerous powerful campaigns targeted at their core demographic, and simultaneously begins promoting its own brand. At the appropriate time it then issues a red herring. The corporate names involved in this venture and backing its initial funding are likely to attract considerable attention.

An initial IPO could potentially account for billions in instant cash...and the acquisitions can commence ;)

Now that the IPO is ready, you now have an option to invest a % of your new found wealth in the new company and watch as that entity's pps enjoys an aggressive growth pattern.

That was the theory in a nutshell. Hope this explanation helps.

Best,
Be Confident