Lets say (hypothetically) the share exchange agreement does happen and all SLMU shareholders are permitted to tender their shares. SLMU shareholders will receive 1 share of DSTI for every 6 shares of SLMU.
What does DSTI do?
What are their revenue, cash flow, EBITDA and net results projections?
Where are all these contracts that they have spoken of...I dont see any press releases regarding business for DSTI?...the last 2 press releases for deals are from SLMU, and since there MAY be (hypothetically) a tender, those revenues from those 2 press releases announced last week are going to stay in SLMU, both of which are because of ARISE. Remember - SLMU is walking away from Arise and giving it back to the 2 funds because they borrowed money from the 2 funds for the Arise acquisition. Because of the law suit and judgement, Arise revenues do not go to SLMU or their shareholders. And Arise does not go to DSTI.
DSTI assumed $15 million in debt from SLMU. That debt is all the money owed to MM.
Where will DSTI make money to pay back that $15 million in debt?
Is it safe to say that DSTI will raise capital through an equity line to pay back MM that $15 million. An equity line is always done at a discount to market, hence, dilution to DSTI investors for an indefinate period of time. This means DSTI will go down for a very long time, or until the $15 million is paid back.
As of today, both SLMU and DSTI are a non-revenue generating companies (excluding Arise revenues) with not 1 contract.
--- SLMU revenues last quarter ALL came from Arise acquisition. Arise is going to stay with SLMU and/or it will go back to the 2 funds. The 2 press releases that were issued last week were ARISE deals, this said, none of those revenues will benefit DSTI or its shareholders.
Unless I am wrong, there are no benefits of owning DSTI. In fact, ownership in DSTI because of their $15 million debt appears to be worse then the debt in SLMU. At least SLMU (because of Arise) is now starting to generate revenues. Furthermore, SLMu just got rid of $15 million in debt, hence, they still owe $5 million to the 2 funds, but SLMU has proven they have some business (i.e., last Q numbers, 2 new contracts).
You may want to call DSTI and ask them if they already issued DSTI shares to MM, as per the tender agreement to MM for his $15 million in debt.
In that same telephone conversation, you may want to ask DSTI; WHAT DID THEY RECEIVE FOR ASSUMING THE $15 million in debt. Usually when a company assumes debt, they get something in return. considering DSTI assumed $15 million in debt, WHAT DID THEY GET IN RETURN??? Not one person on this message board has either answered that question or asked that question.
Happy Holiday.
Dont hate me for asking questions....investing is all about questions, answers and then using those answers to calculate revenues, cash flow and EPS, and then assuming P/E and then one can calculate the likelihood of a stock going up, or down.
This message post has QUESTIONS....I would think every SLMU and DSTI investor, if they use logic, would want answers to?
