The O/S has nothing to do with the value of a shell since there is not a going business. They probably didn't even consider the current market valuation in deciding the purchase price.
Remember the O/S are held by investors, public and private. Holigan will not 'own' the shares as most are already distributed as free trading or restricted. We do not know the current share breakdown, and that is one area that I hope Holigan addresses shortly after the shell is acquired. He might retire some. And don't forget the 'returned' shares by previous management which are probably in the millions. We heard back at the beginning of the year that the float was only 2 or 3 million, I don't remember the exact numbers.
We will also learn Holigan's intentions for the shell, he most likely will R/M a private concern into it in order to operate as a public company.
This could get interesting real soon..............
550K shares held long
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