Blue Diamond Ventures Inc (BLDV): Rickj_65 (& ALL), an Important BLDV Answ...

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Re: Hurricane_Rick post# 2507

Wednesday, 05/07/2008 10:56:37 AM

Wednesday, May 07, 2008 10:56:37 AM

Rickj_65 (& ALL), an Important BLDV Answer…

Your questions have been very solid and I thank you. I think the below answers I provided to explain your questions at this point should provide much for clarity. Again, I will use NXGNF to explain how things could work, but the company could be a variety of others as it is the concept of execution that needs to be focused on the most.

Before I begin answering your questions, I must first refresh your mind with some key info about NXGNF filed in their 10-K filed on 04/15/2008:
http://knobias.10kwizard.com/filing.php?repo=tenk&ipage=5601461&doc=1&total=&back=2&g=&attach=on

When I called NXGNF, the guy didn’t have a clue about anything as all he could tell me was that NXCDQ was acquired by Healthcare Technologies LTD. When you get a chance, go to their 10k that I have listed above to verify/review the key points below:

** MAC Bioventures Inc. is a Belize corporation ("MAC").
** MAC Bioventures Inc. purchased approximately 91% of NXGNF.
** MAC was issued 38,280,000 shares.
** MAC shares represent $58 million appraised value.
** Immediately after giving effect to the Plan, the OS was 42,100,998 shares.

You said to let’s pretend that you owned 1,000 shares of NXGNF at $800 with a closing price of $.80 per share. I think you want to know the value of your shares and what would happen to your shares given the current BLDV scenario.

At the time when MAC Bioventures Inc. purchased 38,280,000 shares, that represented approximately 91% of the then OS of 42,100,998 shares. The OS of NXGNF is now 42,720,998 shares.

So now, those 38,280,000 shares of NXGNF that are owned by MAC Bioventures Inc. represent:

38,280,000 shares ÷ 42,720,998 shares = 90%

OS = 42,720,998 shares
Restricted = 38,280,000 shares
Float = 4,440,998 shares

Your 1,000 shares of NXGNF would be part of the Float as the shares available for the public to buy. So they would be part of those 4,440,998 shares. This is where all of the NXGNF retail shareholder’s positions would reside. This would make up the 10% difference of NXGNF to be accounted for as part of the completed reverse merger.

The other 90% of NXGNF shares would represent BLDV which are restricted and is owned by MAC Bioventures. Given from what has been considered, it is thought that BLDV would reverse merge into MAC Bioventures. So…

90% of NXGNF = MAC Bioventures = 38,280,000 shares

MAC Bioventures = BLDV = 205,000,000 shares

90% of NXGNF = MAC Bioventures
MAC Bioventures = BLDV
BLDV = 90% of NXGNF

38,280,000 shares = 205,000,000 shares

To determine how many BLDV shares would need to be reduced to go into each share of MAC Bioventures shares, you would simply divide…

205,000,000 ÷ 38,280,000 = 5.355

That means that BLDV would need to have executed a 1 to 5.355 reverse split to have 100% of its OS go into 100% of MAC Bioventures which equates to 90% of NXGNF.

It is thought that MAC Bioventures has been acquired by BLDV since it is a Belize corporation and from other DD previous posted in which BLDV will establish a major biodiesel operations in Belize.

BLDV shareholders positions would be reverse split by a 1 to 5.355 ratio. NXGNF shareholders’ positions would remain the same.

The valuation that BLDV would be bringing into NXGNF would make its value to be worth at least supportive of a $4.00 per share bid price which is the NASDAQ Initial Requirements of which I was told would be met by the BLDV CEO.

So if you bought 1,000 shares of NXGNF at .80 per share, it will cost you $800.00. With NXGNF increasing in value to support a $4.00 bid, your 1,000 shares of NXGNF would be worth:

1,000 x $4.00 = $4,000 in Value

Your 1,000 shares of NXGNF would have brought you an over 200% gain, but you would have been better off using that $800 and putting it into BLDV even with the 1 to 5.355 ratio that I spoke of above. This is even if you had to use your $800 to buy BLDV at .01 per share you still would have been better off. Observe:

$800 ÷ .01 = 80,000 shares of BLDV

80,000 shares of BLDV ÷ 5.355 = 14,939 shares of the merged NXGNF

14,939 x $4.00 bid price = $59,756 in value

So, buying BLDV at .01 versus NXGNF at .80 per share allows your $800 investment to be worth $59,756 in value considering things happen as expected.

An actual example of a stock going from the pink sheets, to the OTCBB, and then on to the NASDAQ is within the post below. Again, read this post below for an example of how CKEC had gone from .20 on the pink sheets, to the OTCBB, and then on to the over $30.00+ per share on the NASDAQ:
http://investorshub.advfn.com/boards/read_msg.asp?message_id=29091429

Another example was back on 7 Jun 2004 where Yamana Resources had gone to the AMEX where Yamana closed on a Thursday at .06 per share, came out with huge news the next day on Friday to close at $1.91 per share and never looked back. This was an example that was posted to me over on my Ragingbull forum back in 2004 to explain (on a different topic) how the “$3.00 price for 30 days AMEX rule” is able to be waived if the company merging has a certain valuation placed into it. The NASDAQ is a little different though, but BLDV is expected to meet all NASDAQ requirements from what I was told by the BLDV CEO.

Again, I used NXGNF to explain how things could work, but the actual company could be a variety of others as it is the concept of execution that needs to be focused on the most. I hope this helps to make things a little more clear.

v/r
Sterling

Sterling's Trading & Investing Strategies:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=29867262