LOOK got $600k in cash yesterday. The pegged value of $4 million in Pyxis stock is just that and it could prove to be worth 3-4x that much as the company executes and to take advantage of the two assets that drove this merger - LOOK's public listing and the NOLs. When the merger is consummated, Pyxis will be uniquely positioned in the capital intensive but extremely lucrative maritime transportation space that is flowering in the current economic environment. $196 million in NOLs was just acquired by a company in a capital intensive but extremely lucrative space that currently favored due to economic circumstances that will allow it to print money. The principals of Pyris and Looksmart and the bankers at Maxim know this and they likely have a large pipeline of acquisitions that can be completed when this deal closes.
The value that will flow to each LOOK share as a result of the merger will be $2.76 of the new Pyxis plus the upside of its ability to add to the fleet using its new exchange listed acquisition currency and shelter the $196 million in federal NOL carryforwards. Arguably (at 5.66% percentage ownership in the new entity) that could be north of $4 per share as was posted here last night, but don't forget that the biggest thing shareholders need to understand is that YOU STILL OWN 100% OF THE LOOKSMART COMPANY OPERATING ASSETS. Everything you bought Look for in terms of the Looksmart AdCenter, Clickable, Conversion Media, ShopWiki, etc. will be owned by you in the same percentage your shares owned of it two days ago. LOOK management just sold the company assets that had little to no value to LOOK holders for what may end up being $4+ per share to you in addition to the value you already owned.
From the original 8-k - "Under the Purchase Agreement, Discover further agreed that so long as it or any of its affiliates holds any Series A Preferred Stock or Common Stock underlying such shares, neither Discover nor any affiliate will engage in or effect, directly or indirectly, any short sale of Common Stock, including but not limited to, through an investment in any derivative instrument having the same effect."