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Re: ShawnyD post# 28276

Saturday, 08/19/2017 9:08:19 PM

Saturday, August 19, 2017 9:08:19 PM

Post# of 43557
Unfortunately any financing will have derivative toxic effects. Short of a reverse split to reduce the share count, there are about 90M more shares issued than there should gace been. That's going to haunt the share price for the next 20 years.

Put it this way: let's say they could raise $35M tomorrow at .50/share and never had to issue the toxic financing. They'd be at about 40M shares and then they'd issue another 70m for a total of 110M OS.

Each location costs 600k to build out after incentives so they can afford 58 new locations with that $35M. Each store makes $300k profit.

60 total locations (including two current) at 300k = $18M net earnings

18M/110M shares OS = .163 EPS

.163 EPS x 10x PE multiple = $1.63/share price.

Or...

$18M / 200M OS shares = .09 EPS = .90/share...

It gets worse as the numbers grow.

Toxic financing sucks! And now we have to pray that Parsi can get real financing at a good valuation while the share price is a nickel...he should have jumped at the chance to finance back in March, but didn't...ugh.

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