HokieHead's Share Structure and PPS Objectives
Thanks for sharing those percentages. After reviewing the filing, I can confirm it looks like 2 numbers (in bold) from the following:
Krusecom Insiders = 76.95% or 192,375,000 shares
Legacy Holders (QSGI Shares) = 12.52% or 31,305,903 shares
Unsecured Creditors = 4.05% or 10,125,000 shares
Convertible Preferred = 0.17% or 425,000 shares
MAK Capital = 1.35% or 3,375,000 shares
Key Third Party = 0.91% or 2,275,000 shares
Working Captial (shares they are selling after merger) = 4.05% or 10,125,000 shares
Basically I am using the stated numbers in the POR for the Convertible which states it will convert into 425,000 shares and also where they state they will issue 10 million shares for operating capital (good thing).
According to this share structure we have about 250 million shares outstanding and at .11 a $27.5 million possible market cap. I want to address the R/S and change in Authorized shares. Any changes they make to the stock (R/S, increase in O/S, etc.) will affect everyone, not just the Legacy Holders. So I do not see that happening.
As far as my thoughts on a PPS, it's going to come down to what kind of numbers Krusecom is doing. That will determine where our PPS will go next. I am guessing Kruse is doing $35 million at least in revenues. If this were to trade at a low 5x sales, it would garner a PPS of at least $0.75, add in the NOL value of about .06 now with this share structure and you have about a $0.80 to $0.85 near term PPS. These guys revenues and earnings are probably going thru the roof each quarter so the 5x sales may be low.
If they need the higher PPS to get to a higher exchange, which would be a positive thing, they may have to do a 1/3 reverse split, but remember! It will affect everyone, not just us. They even use an example in the POR.
IMO, I see going to $0.50 easily this week and fluctuate between $0.65 and $0.85 until more financials are known. Remember, our "legacy shares" are the only tradeable shares now in this new to be publicly traded Krusecom, so sell at your own risk lol.
Someone who invested $10,000 at .10 is basically guaranteed $50,000-$60,000 easily in the next week or two. Anyone thinking of selling below $0.35 is crazy as we know they are now intact and are worth at least twice that. Gappage Monday? If this does not open over $0.20 I will be suprised. It's all out there now..
Again all imo...
