In effect, the company is now in possession of roughly $21M in cash and notes receivable (plus some potential earnouts based upon contract renewal negotiations anticipated to take place in Aug-2010)... proceeds from the asset sales. In addition, their remaining business is Bode, an industry leader in DNA forensics. This business was purchased for $12M several years ago, and has been growing at a very rapid rate.
On August 13th, the company announced the sale of Bode (again to management related entities). The sale price was approximately $24.5M cash (there is also potentially $5M in earnouts which I believe have very little value based upon historical Bode revenue levels). The company no longer has any significant operations, and has announced intent to return proceeds of the sale back to shareholders. Below, I provide my estimate of the approximate value of the current GLOI entity...
I anticipate roughly $3.17 to $4.00 in potential value in GLOI stock. I am assuming that the assets/liabilities of GLOI still remaining at the time of the Bode sale will be transfered to the new company. In addition, this does not take into account any potential transaction costs & tax liabilities that may arise.
The company anticipates the sale to close by Q4-2010, so I believe that we may anticipate a sizable dividend sometime in Q1 or Q2 of 2011.
No comments:
Post a Comment