Reverse Mergers & Low Float Plays

[Potse]

HLTT/QMEI...additional developments......

HLTT(.275): Sales of the wound care product (Amniobind) began in the month of September, with the company recording $776K in revenue. The Q3 filed last week contains this somewhat interesting statement......

We expect HWC’s wound care business to become profitable during the fourth quarter of 2022, which will alleviate some of the cash flow burden of that business. That revenue, occurring shortly after our acquisition of the wound care business, will likely be the exception to the norm for our portfolio companies. Our business plan contemplates that, to attract exciting additions to our portfolio, we will offer most the several million dollars of financing that is necessary to bring a medical technology to a stage where its sponsor can function independently. Since our ambition is to sustain a portfolio of such enterprises, our near term capital requirements (near term being the two to three years before we can anticipate initial returns on most of our investments) will be tens of millions of dollars.

QMEI(.64): Besra Gold is doing a $3.4+M rights offering (United States dollars). QMEI is underwriting the offering and will fully participate in its share of the offering. More than likely other shareholders will decide to participate, but if they don't QMEI is prepared to do the entire offering itself. Currently QMEI owns more than 17.5% of Besra. If no other shareholders participate in the rights offering, QMEI would own more than 38% of the company (page 8 of the rights offering presentation)......

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02603945-6A1124620?access_token=83ff96335c2d45a094df02a206a39ff4

According to a November 25 press release, Besra and QMEI are also discussing a production agreement in which QMEI will provide up to $300M in financial support to Besra......

The Board of Besra Gold Inc (ASX: BEZ) (ARBN 141 335 686) (“Besra” or “Company”) is pleased to advise the market that it is in advanced discussions with its substantial shareholder, Quantum Metals Recovery Inc (“QM”), pursuant to which it is proposed that QM will provide up to US$300 million in financial support, commencing as soon as CY2023, by way of a gold offtake purchase facility.

The proposed facility, if implemented, would enable Besra to advance exploration and development planning, and to expedite production at the Bau Gold Project in Sarawak, Malaysia. It is currently proposed that stream deliveries would be based on gold production from Bau, with Besra to receive 90% of the spot gold price for each ounce delivered subject to a monthly cap.

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02603626-6A1124463?access_token=83ff96335c2d45a094df02a206a39ff4

[Involuntary-Recluse]

COSM hod .8397

[Involuntary-Recluse]

Happy Thanksgiving to one and all

[Involuntary-Recluse]

HOOD hod $9.50

[Involuntary-Recluse]

HOOD hod $9.40

[puffadder]

Deng Flutie it is lol

[Involuntary-Recluse]

Shouldn't that be Deng Flutie lol?

[puffadder]

I see Doug Flutie on the horizon

[Involuntary-Recluse]

What he needs is a miracle, imho!

[puffadder]

COSM $.53

[puffadder]

$30 mil mkt cap at a $1 is still low - he needs an eye opener here

[Involuntary-Recluse]

Some folks lack that killer instinct to pounce, when opportunity knocks.
He had at least 10 different occasions since 2014 to do a deal that would have really sent it, during very exuberant markets imho..

At this point, whomever posted that a run to .25 with a subsequent dump down to .05 is the odds on favorite to be correct, imho.

[puffadder]

Avoiding CE after 3/23 is critical right now - great target firm can still send it but yeah he did screw this thing up

[Involuntary-Recluse]

Yup, so much for my $4.59 delusional price targets on askh
He waited tooooooooooooooooo long, assuming anything actually gets done!

[puffadder]

COSM .25 only penny play moving

[Involuntary-Recluse]

HOOD lod $8.75 buy buy buy

[Traderfan]

LFLS(.0799): Picked up some more shares of LFLS today. Currently averaged in under 5.6 cents per share. I first noticed it when Traderfan mentioned it over on Twitter after LFLS issued a press release on November 1. I'm somewhat surprised this stock has not been getting more attention. Unless I am really off on my analysis, this potential shell looks extremely attractive on a structural/fundamental basis.

Hey Potse, I didn't know you were in this one now as well. Very nice. Stock had a good run since that november 1st PR but could certainly do much more with a good reverse merger.

[Involuntary-Recluse]

Great contributions and insight to this board, my good man.

[Potse]

STJO/LFLS...added to positions......

STJO(.104): Picked up some more shares today, following the updates to the OTC Markets profile page. Management seems to be picking up the pace a little bit with regards to getting things updated. Legacy share valuation is under $1.4M at the current price. Just have a feeling this is going to move nicely at some point.

LFLS(.0799): Picked up some more shares of LFLS today. Currently averaged in under 5.6 cents per share. I first noticed it when Traderfan mentioned it over on Twitter after LFLS issued a press release on November 1. I'm somewhat surprised this stock has not been getting more attention. Unless I am really off on my analysis, this potential shell looks extremely attractive on a structural/fundamental basis.

Based on my understanding/interpretation of the press release, it looks like the CEO/insiders intend to sell more than 48M of their existing shares to a RM candidate. That would leave a legacy share count of less than 10M shares. Assuming there are no overly negative changes to that plan, LFLS certainly looks like a very compelling investment at these sub-.10 levels.

I added some shares today after noticing the float update yesterday showed an increase of around 3.2M shares. This is purely a guess on my part (after looking at the management/insider ownership table in the last quarterly report), but that float update suggests to me the possibility that the 621K investment club shares may have been distributed and two of the directors ( Daniela Haynie and Marc Phelps) may have been removed. Combined, the investment club shares and the director positions are roughly 3.2M shares.

[Involuntary-Recluse]

HOOD lod $9.34

[Involuntary-Recluse]

HOOD lod $9.53 buy buy buy

[sweet crude]

TPIA +18% NASDAQ merger in play

[puffadder]

ASKH Twitter Responses from new GM ....

[Involuntary-Recluse]

HOOD hod $10.54

[Involuntary-Recluse]

HOOD hod $10.34

[Involuntary-Recluse]

HOOD lod $8.50 buy buy buy

[sweet crude]

TPIA .18 Colorado vote to legalize mushrooms

TPIA has SEC filing to merger stock on NASDAQ at price of $1.56

Current price $0.18

Float only 1m
https://www.otcmarkets.com/stock/tpia/security

[lasombra]

DBMM 34% gain Fri, on 4 million shares of volume. That has got to be extra-scary for naked shorts if we see a mega-short-squeeze develop!

[J0L]

IHT merger just discovered!

Check out the DD. Pieced together what is happening and people starting to find it the past couple days.

$IHT DD thread

IHT owns and manages hotels, they’re profitable, high insider ownership, share buyback program, and best of all…newly discovered plans for what looks like a MERGER with UniGen. See below… pic.twitter.com/OUBlajtNPm

— J0L (@JolTrades) November 4, 2022

[Potse]

QMEI...additional information related to Esther's departure......

The language/tone in that news item from QMEI certainly makes it sound like this was not a very amicable separation between Esther and the company. I am not really sure what is going on with that situation, and not really sure what to think about it.

There is a possibility that the separation of Esther from the company might not necessarily be because of any animosity between the two parties. This is just a guess on my part, based on some items I found today, but I'm leaning somewhat toward the belief that maybe this was done to distance the company from some negativity that has been surrounding Esther over the last couple of months or so. But, again, that is just my guess. Maybe there are a lot more factors at play here, and things are much more complicated or negative than I think at the moment.

If you go to Esther's Yast Group website, a popup announcement dated November 2 appears. It is fairly lengthy, but I will try to condense it as best as I can understand it. As far as I can determine, QMEI (Quantum Metal) doesn't appear to have any kind of involvement in this beyond just being associated with Esther......

Apparently a lawsuit was filed against Esther in August by an ex-employer in China. The court hearing in China is scheduled for March 2023. The matter involves a dispute over a $473K debt. According to Esther the party in China decided not to wait for the court hearing and sent debt collectors to the Yast Group offices to get the money from her. She was asked to sign a fictitious agreement and was threatened that if she did not pay the money some "illegal debt collectors may visit her". About 4 days after this encounter, a campaign of harassment, allegations and threats against Esther, her family, and her businesses started appearing in social media. Apparently things got so bad that she had to get the police involved.

This is a 6 minute press conference about all of this. It was held at the Yast Group offices. If you have any trouble understanding the man who speaks, the closed caption and transcript features all function on this video. The man sitting next to Esther on the far left of the table is her husband.......

https://yastgroup.world/

[Potse]

EVCI..STJO..TCRI...added to positions recently.....

EVCI(.22): Picked up more shares of the EVCI shell at prices around the 21-25 cent level. I consider EVCI and BDCM (which I also own) to be the most attractive Synergy Management shells from an overall structure/valuation standpoint.

STJO(.0505): Picked up a few more shares of STJO at 4.5 cents. Yesterday's quarterly filing appears to provide the first confirmation that the 86.5M shares have been issued and the RPM merger has been completed.

Lack of timely updates/transparency on the merger probably contributed to the pullback under ten cents. Depending on what additional information/details materialize here, I think STJO would have the ingredients for a significant move upward. Medical devices, healthcare industry, and a legacy share valuation that is currently under $700K.

TCRI(.05): Picked up more shares of the TCRI shell under the 6-cent level. Q3 report should get filed in around 2 weeks or so, and it will be interesting to see if there are any updates or material information.

Investor interest in TCRI fell off a cliff when Munaf Ali disclosed that they had decided not to bring Phoenix public. Analysis of the risk/reward on this shell definitely became more difficult with that decision because it introduced much more uncertainty. It may not be a very popular opinion at the moment, but I still think the risk/reward looks somewhat interesting.

This is the way I am looking at TCRI right now: There are any number of scenarios that might play out here, some extremely good and some extremely bad. Maybe Phoenix decides to let Seng Yeap Kok (the current TCRI CEO, a consultant to TCRI/Phoenix, and the former majority shareholder) find another reverse merger candidate. Or maybe Phoenix with its extensive connections in the business world has other ideas on what it wants to do with the TCRI shell. Depending on how a reverse merger is structured here, TCRI's current legacy share valuation could be under $500K.

As of the last quarterly report, Munaf Ali and Phoenix still owned the majority shares, and they were paying all of the shell's expenses. I checked the LinkedIn profile for the Phoenix CFO (Jeetendra Bhatia) and he still mentions that Phoenix controls a stock in the United States. Phoenix issued a press release last week, and it reinforces the scope/influence of that company's operations. From my perspective it is hard to ignore the involvement of Phoenix in TCRI. Until that involvement significantly changes, I would like to have some exposure to this shell.

https://www.yahoo.com/now/phoenix-technology-eyes-global-expansion-084800622.html

Phoenix Technology (www.phoenix.store) is an international distributor for Bitmain and Whatsminer miners used for mining Bitcoin and other crypto-currencies and it also provides hosting/data centre services for blockchain sector in Russia, Canada and the USA. It controls listed companies in Canada and the USA.

https://www.linkedin.com/in/jeetendrabhatia/

[Involuntary-Recluse]

HOOD hod $12.76

[Bulls on Parade]

Two low float mergers with promise
$HDUP
$BABL

[RyNo_23]

30 million share day would equal game changer…

$ASKH

[Involuntary-Recluse]

It would possibly blow the entire OTC up as it would be the only play of substance "IF"....

Imagine a 30 million share volume day!!!!!

[RyNo_23]

Desperately…$hit is dead.

ASKH…$$$…maybe?

[Involuntary-Recluse]

How about the one that a delusional poster keeps on referring to $4.59 or ????????????????????????

Since of course USXP is out of the question

[puffadder]

OTC needs a GOOD low float merger!

[Potse]

HLTT(.30)...post-merger details on the proposed SPK/Varian deal......

One aspect of HLTT that is particularly interesting at the moment is its 5.5% ownership position in privately-held Varian Biopharma. Originally Varian was planning to go public via HLTT, but I think Varian/HLTT had difficulty attracting financing. Both parties mutually agreed to abandon the plan. So Varian then entered into a potential acquisition deal with SPK (a Nasdaq SPAC). As with most SPAC deals it is taking a considerable amount of time to get the deal closed.

Recently SPK mentioned in its filings that as part of closing the deal a simultaneous private placement was being worked on. I found that a bit interesting (and somewhat unusual) because the SPAC already had a fairly decent amount of cash (around $50M). SPK recently had its vote to extend the time for the SPAC to complete its acquisition and the 8-K disclosed a couple of items that caught my attention: 1) One day before the vote an institutional investor agreed to pay the first month's extension. I am not entirely sure but it is possible this investor may not have had any previous relationship with this SPAC. 2) More than 61% of the SPAC's shares were tendered for redemption. There are now only a little more than 2.5M shares outstanding in this SPAC.

That recent disclosure of work being done on a private placement and the institutional investor paying the first extension almost suggests to me that SPK probably was aware there would be a high number of redemptions but SPK/Varian might still be interested in trying to get a deal completed. If that is the case it will be interesting to see what kind of adjustments might be made to the original terms of the deal and what (if any) positive/negative impact it might have on HLTT. Under the original deal, HLTT was going to own a little more than 2.2% of the post-merger company.

Although a date has not yet been set for the shareholder vote on the merger of SPK and Varian Biopharma, I think there is now a strong likelihood the merger will get approved. Most of the investors who wanted to cash-out of this particular SPAC probably already did it with the most recent extension vote. The amended S-4 that SPK filed last week contains enough information on pages 24/25 to do some reasonably accurate calculations on the private placement, final structure, and HLTT's ownership position.

It looks like they have made arrangements for an $11.8+M private placement at a price above $6.6, and the final share structure (including the private placement shares) will be in the range of 7.91M and 8.95M shares. HLTT will own a little over 246K shares (around 2.75-3.1%) of the post-merger company.

https://www.otcmarkets.com/filing/html?id=16146559&guid=_Fz-keuR5l-FJth

[sweet crude]

TPIA .18 Psilocybin merger w/ NASDAQ priced $1.56

[Involuntary-Recluse]

HOOD hod $12.36

[nsomniyak]

Faster, Faster, the light is turning red...

[puffadder]

Yeah when I saw they were looking outside of China was a nice surprise.

[nsomniyak]

That would be way better than Chinese.

[puffadder]

Yes - working with CIWM to find one is all we have thus far. Please be Australia or New Zealand based IF.

[nsomniyak]

IF there is a partner.

[puffadder]

Hell there’s no doubt lol - but if the partner is quality we may get an offset for his investor relations shortcomings.

CLHI was merging with TDS UK a $1 mil revenue tech outfit with 6 employees. Kudos to those folks driving it to $2.48 as IR mentioned.

ASKH will be all about the partner and thankfully not Richards.

[nsomniyak]

There's one big difference - CLHI had a community of people following it, and, at the time, Synergy actively working the shell.

However, to use either "actively" or working in a sentence with our CEO in ASKH would be an oxymoron.

[Involuntary-Recluse]

HOOD hod $11.57

[puffadder]

In Deng we trust