Balance sheet as of 9/28/2012:
Total assets = $31.2M (with PPE on the books at only $6.4M)
Total liabilities = $13.5M
Shareholder's equity = $17.6M
Shares outstanding = 5.1M
So book value = $3.45
But the $6.4M of property, plant & equipment includes 1,000,000 ft^2 (23 acres) of warehouse, which probably sits on lots of ~50 acres. To buy this warehouse new @ $50/ft^2 including land at $25,000/acre would cost at least $51M. So the company is valuing it as 12 cents on the dollar. If there is value in the equipment, it is less than 12 cents on the dollar.
I suggest that the PPE is seriously undervalued, with a more realistic valuation of $20M, which would give a shareholder equity of $6.12/share. No wonder Ron Butler keeps us in the dark (by delisting and delaying filing information), and then is suggesting that HIS group buy this company out a $5M, or $1/share, when it is probably worth several times that.
$5M divided by 5.1M shares outstanding works out to ~$1/share. From the press release: " The non-binding letter of intent and term sheet also contemplates a $5 million valuation of the Company with record stockholders receiving cash in exchange for each common share held based upon a final valuation amount and the number of shares then outstanding. "
You are way off on the new warehouse construction cost. It isn't $50/ft^2, it is closer to $100. Furthermore, the Senatoba site alone has 100 acres, not 50 acres for both sites. Using the new construction numbers, the new build price with $25,000/acre for 200 acres would be $105M, meaning that with zero equipment, the property and plant is valued at just 6.1 cents on the dollar!