Chinese? Equity swaps? Space ballons? Inflated mCap over a period of 6 months?
Alarm bells really starting to ring!
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I'm going to have a go at making a diagram of how it works.
I'm also going to outline some more information about KSL.
The silly season has been good to me so far so I'm a little bit behind in my posts..
https://www.dropbox.com/s/o0ll6esjw6...jpkls.pdf?dl=0
I'm not 100% sure that the following is necessarily true:
The cash will obviously not be sitting there 30 months down the track (edit: so essentially the "minus $37.5m" you mention above isn't entirely accurate as it will be long spent)... However, it may very well be a very good deal for KSL if the MJP sells.
So essentially it seems the KSL are interested in having the opportunity to buy a majority stake in MJP.
The ASX listing has to go ahead otherwise none of this happens.
It may be a good indication to other "big boys" out there that the opportunity to buy a large stake in MJP could be at risk of expiring :D
As for "near space," here is a helpful little blurb from this site:
Where the Martin Jetpack fits into this, I'm not sure.Quote:
To explore and develop the Near Space for humanity, Kuang-Chi Science Ltd launched the program "Apollo", named after Kuang Chi's Apollo Base in Longgang District of Shenzhen. The base, surrounded by hills, was originally an abandoned farm that was used for raising pigeons. It is rebuilt by Kuang-Chi Science and now serves as the manufacture and testing base for near space exploration.
Near space is the region of Earth's atmosphere that lies between 20 to 100 km (65,000 to 328,000 feet) above sea level. The region, above where commercial airliners fly, but below satellites orbit, has remained unexplored. Compare to satellite, Near Space Aircraft cost significantly less in materials, launching and operation. Capable of powering itself and carrying more payloads, Near Space Aircraft is designed to have a long duration in near space and expected to provide more stable communication signal and high quality space service for the earth.
is KSL a better buy than MJP ?
I think the top right part of your chart needs amending to reflect the potential sale date of HKCo.
KSL, in its press release says "At any time prior to the Maturity Date, the Company shall have the option to sell its 51% equity interest in HKCo to Martin Jetpack at a total consideration of AUD35.7 million (equivalent to approximately HK$226.6 million) which shall be satisfied by way of allotment and issuance of the Swap Shares' (My bold / underlining). So I reckon it could bw anytime before 30 months after listing
There we go - amended. "Good spotting," minimoke.
:D:D:D:D:D