This also presents the possibility of demonstrating, in the stock market, that the sum of the parts is worth more than the whole. It is the Thermo-Electron model where a successful subsidiary can be spun out into the public market and its shareholders are then made up of the shareholders of Urban-AG. This is our intent, although we cannot either guarantee that our subsidiaries will get to this stage or that if spun out they will be trading at an advantageous valuation. This is the road we intend and expect to travel.Using a combination of Historical and Projected financial statements, the Company develops a purchase scenario encompassing expected market cap, industry comparison, and various other valuation methods that are centered on the asking price of the seller. These parameters are measured over an eighteen to twenty-four month period with applicable Make Whole Payments or Claw back provisions being applied at the end of the measurement period. If all the projections are met, the seller gets the price negotiated and that AQUM agreed to pay based on the performance criteria that the seller established. If they are not met, then the price is adjusted at every level of payment. If the performance is damaging the shareholder value of AQUM, then AQUM can initiate the spin out; likewise, if AQUM can recognize more shareholder value in a spin out, that can be initiated as well.
Urban AG Corp. Announces Criteria For Acquisitions
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