Mike The Pike Productions Inc (MIKP)

[imiloa]

re: Acquisition, the question is: How many shares is Mark given the target mgmt to buy the company?

Logic: If the target is already net profitable every year, then what do they gain by letting Mark acquire them?

-- Cash influx (if cash acquisition)? If they are net profitable, they likely have the cash they need to expand and grow on their own terms.

-- Hollywood connections? Presumably a net profitable film company for 10+ years has more connections than Mark at this point.

-- Access to Filmworks? Maybe, but they already have post services and have been profitable.

Seems most likely the incentive is the ability to easily go public (via MIKP shares).
And that is only valuable if they target's mgmt gets a large chunk of MIKP for the acquisition.

How much is "large?" 1b? 2b?


re: $3.75m financing, how much did White Space cost thus far? How much will Skin Trade cost?
Remember that $5m is a very small budget for a film with visual effects.

And Mark was diluting about $50k-$80k per month all year, presumably to pay his bills and salary.


For clarity, I'm not saying you're assumptions are wrong.
Just that we can't be certain they are correct.
And, given Mark's track record thus far, it seems a big gamble to assume they are correct.

Personally, I'll feel more comfortable when:
1. I know what the acquisition target is.
2. I know the terms of the acquisition. ie: Cash? Shares? How much/many of each?
3. I see Mark go 3 months without diluting MIKP beyond current 2b, implying he is maintaining cash flow via investments or the acquisition's revenue streams.