Potential PPS valuation of BMSN(of course imo):
Seems like the A/S is 500M unless someone else have any other updated number..
Based on a worst case scenario of 500M O/S (which is very unlikely), with the $20M infusion into the company, w/o any multipliers and w/o taking into account of any potential growth of the company, a market cap of $20M will put the pps at 0.04
If the O/S is somewhere in 400M range, a $20M market cap would put the pps valuation at 0.05
if the O/S is somewhere around 200M range, a $20M market cap would put the pps valuation at 0.10
Remember that all the estimated valuation is based on the $20M infusion alone and does not include any additional consideration on the technology the company has and also not taking into consideration the growth potential of the company
Also, another key thing is that the South Ridge partners cannot own more than 10% of the O/S, so even on a worst case scenario of the O/S growing to 500M (same as A/S) the maximum number of shares they can get is 50M. That would mean the pps has to be atleast 0.40 for them to even get their money back and the pps have to be well above 0.40 to make any profit on the money. If the O/S is 200M the maximum shares they can own is 20M shares based on 10% ownership and that means the pps have to be atleast $1 for them to start making any profit on the $20M they gave the company. They must think that pps will go high to some of these values in future for them to agree to this deal. All imo