Re: maybe Zen will go first?
in response to
by
posted on
May 05, 2020 05:27PM
This comes up often but these two companies are separate legal entities with differnet shareholders. There are a lot common to both but all. ZCC is not a subsidiary of RVX. ZCC uses some office/lab space and personnel but pays RVX for that. In fairness to all shareholders, cash can not be transferred from one to the other unless done properly by interest bearing debt, equity purchase or such instruments. As an example, Eastern Capital now has a much bigger position in ZCC than RVX and KD would want fair treatment for his position. There are many smaller holders that don't have the same position in both companies. If ZCC acquired enough capital to be able to afford a position or loan to RVX, ZCC shareholders would deserve proper return on their investment for it to be considered a good investment decision. They would still need enough cash left for everything they plan to do within ZCC. Rememeber that ZCC shareholders would want a huge payout to them should there be a sale. I would not be looking at this as a solution for RVX.