didn't misspell Economic. Gel misspelling economic is no big deal. An
analyst or reporter misspelling economic is a huge deal.
Secondly, the article interchanges the term debt and equity. This is a big
no-no. If company A raises 50M in equity and did nothing else the company
is in $0 of debt, assuming the underwriters were paid with a portion of the
equity. Additionally, with an offering up to (a pitiful) 50 Million this
will not be for your average investors. This stock will not be able to
make its way into the public capital markets - well maybe the Pink Sheets
but I don't know too many retailer investors that trade there. It will be
a private placement offering. Average people will never get a chance to
participate mostly because they won't know it is every happening and their
brokers/financial advisors won't either. Usually private placements are
pitched to ultra-wealthy investors who are willing to take on the
extraordinary amount of risk associated with them. Venture capital groups,
investment banks, insurance companies, pension plans, and university
endowments may participate - although I doubt any would be rushing into the
gaming market.
I'm not saying the business model is solid or the venture might
succeed. I'm just pointing out that his numbers don't add up because his
assumptions and basic finance knowledge is very lacking.
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