READ: Get the Big Picture Folks. This is not your regular stinky pinky that SPLC was merged into. You know like you have your Mom-pop corner coffee shop and then you have Starbucks.
Think PixelMags is like one of the high-growth, high-value StartUps like Facebook, WhatsApp. etc. Yeah, I know it is not that big. But the company's product, the way it's structured, the original founders and the current players involved, all were trying and are trying to create a company with huge growth and huge market potential.
That's why Vert is involved. PixelMags have significant # of employees. Zoom has 32 verified emplyees in their database. Others point to between 100-200 employees. Other place has 70+ employees. The bottom line is they have REAL top notch engineers who wouldn't work anywhere else but only at a top notch Startup. Just look at some of their engineers Bio. Like any other top tech startups, they need lots of capital. Uber, AirBnB, Snapchat and all tech startups are not profitable. Amazon was not profitable for more than 15 years. They are generally VC funded. Uber raises $1 billion like it is $100K.
Snapchat recently rasied $1.8B at $25 billion valuation with only $360M revenue for 2016.
My guess is the original founders were too confident and didn't want to give away lots of equities and take on VC money. After 8 years, they found themselves in a situation where they do need lots of money if they want to grow exponentially. They also believe that the company is worth a lot at this point. As a result, they are unwilling to go after VC money and give away lots of equities. VC's will value it lower than what they think it is worth. That's why they took money from Vert (it is in Crunchbase) and trying to raise money through this RM and a secondary offering later after uplisting. That seems to be the logical path here. If my thinking is right then this is a brilliant move.
After the RS there will be only 18M OS and much less float maybe 3, 4, 5 million. No one knows the exact float but it is not a lot. If they can show $59-$60M revenue, this can go as high as $0.50 or even more with no dilution. There is no dilution happening now. So after RS the pps maybe between $25-$50-$100, who knows.
But with only 18M OS, they can do a secondary if they want to raise say $100M-$200M easy. Likely Vert is already talking to HNW investors for such a secondary. At $50 a piece they only need to sell 4M shares to raise $200M. Then they are golden. They will have publicly traded company with right valuation and they are on track to what they originally planned.
I don't know about you but this all makes sense to me.
Any other explanation is illogical and irrational. Why else are they going through all the difficulties? If they are following the path of other spammy OTC stock, how many shares they can sell/dump in the market before crashing it to 0.0001? How much money can they raise that way? Remember, they have real engineers working.
The STOP sign was removed, it should have doubled yesterday but a bunch of folks are spreading lies or unfounded information and that is causing panic among small time penny traders. That is the sad life of OTC stocks.
Good Luck.
Fools argue to win, so stay away from them and still say Thank you.
Smart people argue to seek the truth and say "Thank You" when they find that they are wrong.
