Agoracom Blog

INTERVIEW: Augusta Industries $ Discusses Sale of FOX-TEK Canada to Mooncor for up to $21.5M $ $ $

Posted by AGORACOM-JC at 4:05 PM on Wednesday, May 30th, 2018

On May 27th, Augusta Industries had a market capitalization of approximately $6.5 Million.

On May 28th, the Company announced the sale of one of its’ two subsidiaries for up to $21.5 Million consisting of $9,500,000 in common stock of the acquiror (Mooncor) and additional potential royalties of $12,000,000.

Augusta plans to “distribute a portion of the consideration shares to shareholders” and though no official plan is in place, CEO Allen Lone believes it will be in the 25% range. If you do the math, 25% of $9.5M is $2.37M being returned to shareholders. At a market cap of $6.5, that amounts to an approximate 35% return to current shareholders.

Plus, the remaining shares go on the balance sheet of the company and royalty payments could add substantial cash to the company in the coming years. Not bad. Not bad at all.

If that were it, you’d have no reason to watch the interview – but there is more. A lot more with respect to the remaining subsidiary (Marcon) and other plans.

A new page is turning for Augusta and investors both old and new will want to watch what Allen has to say.

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