Kallo Inc. (KALO)

[rjbluesky]

$KALO. Sean, to me the framework of the share structure is a bit more simple. About 8.7 bil is currently in the o/s which includes retail/management insiders/Kassett. I think Kassett owns around 1.5 bil or so. After the 1:600 split, there will only be about 14.6 mil o/s where management will own approx. 32% (approx. 5 mil) and Kassett will own an estimated 17% (2.5 mil). That only leaves approx. 7 mil in the retail trading float. I did note there is another approx. 5.4 mil reserved (reservations required) for 3 Convertable Noteholders post split but will these actually be issued or will Kassett (FEPI) just pay these fairly small $ notes with cash? Bottom line is there will hardly be any shares available for trading at the outset.

Lots of unknowns at this point before we can determine what the share price will be post split. Will they get Ghana and/or Guinea or other $s from other countries or will the operations change completely? Will there be a merger/name change, etc.? I just don't buy a r/s on an empty shell and Kassett/FEPI using any of their allocated shares to pay off debt but I guess anything is possible but why? Technically, there is only about $3 mil Total debt out there which includes approx $500-$700K or so noteholder debt. Those Kassett/FEPI shares could be worth a fortune depending on what transpires in the operations at split time and keep in mind those newly issued Kassett/FEPI shares I think will be restricted so how will they pay any debt with those? Cash almost has to be the way out of debt.

Also, raising the a/s from 25 mil to 1.150 bil (they could have rasised it back to 15 bil) is no big deal to me and has to be higher than the approx 500 mil o/s which includes the 475 mil Kassett/FEPI shares. They have already explained this increase is to help prevent takeovers and several other reasons which includes the comment "or benefit stockholders in some other manner."

This fairly small r/s for us retail is rare for pink stocks. They could have killed us with a 1:5000 or any other high factor. But the insiders and Kassett are also in the o/s so the r/s is fairly minimal and I can't help but believe there is a large asset of some sort waiting in the wings to jump into the shell at the time of the r/s so with any large asset coming, $.06 may never be a factor. It doesn't make any sense to do a share restructure without bringing anything else of value to the table.

Finally, from Page 5 of this 8K filing.

5.2 SEC Filings. It is understood that KALLO is currently delinquent in reporting with the SEC and the parties agree that KALLO will have until October 10, 2017 to become current in its reporting with the SEC.

http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=11999876-5612-29808&type=sect&TabIndex=2&companyid=736857&ppu=%252fdefault.aspx%253fcik%253d1389034