I am not well educated in IFRS Accounting Standard, but I would describe the situation as follows. The information I use was found here:
https://sedar.com/GetFile.do?lang=EN&docClass=7&issuerNo=00003983&issuerType=03&projectNo=02907546&docId=4508180&fbclid=IwAR2-JssW06sJZf2s0qnxw0sJi-HSQu-CmJT6xqwCUBQPLhG9-l8b7yJcBlI
Denselight is in the books with 17M (Page 22, Disposal Group Assets 20M – Liabilities 3M).
Let´s look at this transaction alone, let´s assume DL will be sold for 40 M Cash and no tax is due.
Assets:
a) The Asset “Cash” will rise 40M
b) The Assets “DL” (Disposal Group Assets) will be 0 (decrease 20M)
c) This means “Total Assets” will rise 20M
Liabilities:
a) The (Disposal Group) Liabilities will decrease 3M
b) The Accounting Profit (23M) will decrease the Accumulated Loss respectively rise Equity.
c) This means “Total Liabilities” will rise 20M
That´s it. The assumed 40M Cash will be used partial to pay back Espresso, the rest would be very comfortable, I´d say.
After the transaction, Denselight sales are gone as well as expenses. 100%? Less? How many people will stay on POET´s payroll? Is the complete product line sold together with DL?
I don´t know. Do you?
Holk