Siyata Mobile Inc (SYTA)

[Sheepdog]

There is no way to evaluate the value of this stock as there is a 500% swing in value depending on the OS at the time of merger, if any. The problem is that the proposed deal is a double hit to shareholders if the OS goes up. The dilution makes the current OS less and the dividend is also less because of the formulas of conversion etc. That is why is is absolutely necessary to track the OS and troubling that the company does not regularly update it to shareholders.

Yes, the actual value of Core Gaming comes into consideration. But not until after the merger, Then it could be a bloodbath.

[tat4tat]

Looks like 2.15 to me.

[Golden Cross]

This is a $10+ stock

[Sheepdog]

Is it possible that Hudson global shares was still listing before reverse split?

Not possible as disclosed under the timeline. the split was on 12/27/24. they were restricted shares. The F-1 registering them for sale was effective on 1/28/25. I have seen no amendments to the agreement filed. There was an agreement for sale with Hudson on 10/21/24 for $7M. There was another deal with Hudson for $18M on Feb 26, 2025, well after the RS.

[Sheepdog]

thank you. that is important.

[IcySorcerer31]

I created the account yesterday because I never heard of this board, saw your message regarding shares. I had just talked to Ir relations, been emailing them regularly to ask questions, they answered with the information I posted, so I shared. If it helps make an informed decision great. If you have other information, I would love to hear it. Have you spoken with the company yourself? Is it possible that Hudson global shares was still listing before reverse split?

[IcySorcerer31]

This came directly from ir relations about a week ago

[Sheepdog]

As of what date and did this come from the company?

[Sheepdog]

How do you know there are "2M shares out"? Why didn't you answer my post asking what the CURRENT O/S is if you know.

Without knowing the current OS, there is NO WAY to estimate the value of the stock because of the conversion calculations stated in the merger deal. Plus the At todays price and assuming the 1/31/25 OS is still the current OS. we can estimate at the dilution to be:
> Current O/S = 1,646,287
> Purchase shares = 74,074,074
> 10% Dividend shares = 8,413,373

Minimum O/S at merger would be 84,133,734 giving a market cap of $1.094 BILLION at your claimed $13/share. Simple math shows that the current price should be around $1.9/share assuming a $160M valuation and Current OS of 1,646,287 with no dividend bonus. Figuring in the dividend bonus that would take it to a current value of $9.70

But what if the O/S was really 5,000,000 (for example). That would make the current value,including the bonus dividend of only 4.12/share - AND THAT IS WHY I AM ASKING WHAT THE CURRENT O/S is.


I'll visit you in the poor house soon.

[Sheepdog]

Thanks for your attempt with your new account started today.

We also have $18M worth of shares convertible at 85% of market. Assuming today's close of $2.16, that would be a conversion price of $1.84 or potentially 9.783M shares. I have no idea how many of them have been converted and added to the last reported O/S from the end of January.....from 0 to all 10M of them. Do you?

(That was the Hudson Global Ventures financing shares reported the end of January).

[IcySorcerer31]

Please post repost and post again on message boards because I want to share this and people keep asking.

presently we have 1,774,796 common shares outstanding.

We also have 431 Class C pref shares outstanding that are convertible into common shares so theoretically, is equivalent to another 189,035 more common shares.
= total fully diluted share count of 1,963,831.
All warrants and stock options are way way out of the money.

[diamondguru-one]

dumbazz there's 2 million shares out.....R/S isn't coming...nice try tho.....see you around $10/13 bucks soon............

[Sheepdog]

Another 2 to 3 weeks before the announcement that SYTA has lost it's Auditor? Next auditor up will probably be Aloba Awomolo & Partners from Nigeria. Of course, there will be the necessary delay in the 10K associated with that.

[Sheepdog]

Another reverse split coming? The way this is dropping another one will be necessary again soon...like in weeks.

[Sheepdog]

People realizing what is really happening with the company and it's proposed reverse merger? Hard to believe this reached almost $10.00 just 2 months ago. Now 2.11

Yet another law firm joins in the investigation of this merger.

Wondering why SYTA will not provide updated Outstanding share info.
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[Monksdream]

SYTA, new 52 week low

[tat4tat]

News today on OTC Markets about CORE Gaming going public soon, but mostly redundant information. The highlight was CORE having ads to generate revenue. Market down big again is not helping.

[Sheepdog]

This is a video from Core Gaming regarding the merger. I saw this posted on another board.

Merger Video
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I think most of it is standard Promotional BS, but it is information regarding the Siyata inc. proposed merger.

[Sheepdog]

"ELOC" Shares = Hudson Global Ventures purchase shares.

[Sheepdog]

Corrected calcs:

Outstanding common shares as of 2/26/25 >> 1,646,287
Additional shares to purchase Core >> 70,175,439
Shares to make the OS 10% of total after merger >> 7,980,192
TOTAL share OS AFTER the merger >> 79,801,918

Existing shareholders would get shares worth 4.85 (7,980,192/1,646,287) more then they are now worth. That would make today's shares worth $2.28 x 4.85 = $11.06/share.
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[Sheepdog]

If the merger were to happen today, this would be the effect (assuming using today's price of $2.28/share)

Outstanding common shares as of 2/26/25 >> 1,646,287
Additional shares to purchase Core ($160M/$2.28) >>70,175,439
Additional shares to make the OS 10% ((1,646,287 + 70,175,439)/.9 - 1,646,287) >> 7,797,271
TOTAL share OS AFTER the merger 79,618,997

Existing shares would get 4.74 more shares for every share they now have. That would make today's shares worth $2.28 x 5.74 = $13.09/share.

(Variables in red) That assumes a purchase of $160,000,000 at 2.28 and the last announced Outstanding shares amount of 1,646,287. Changes in either can drastically change the outcome, but the calculation method used will provide both the current shareholder equivalent price and the Total Outstanding shares after the merger for the assumed O/S and S/P.

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[Sheepdog]

This is a toxic lending deal. The "ELOC" deal as described in the latest F-1 where a small percent of the shares are registered. Toxic lending is associated with a company that can no longer sell shares at market nor obtain legit loans.

It is not lost on me that the minute Aitan (Core Gaming) appears on the scene, the company turns to such toxic lending.
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[Sheepdog]

It was a reply to a deleted post. It may be a reason this has dropped 65% in a week after the announcement of a merger with his company.

[tat4tat]

Why is that relevant?

[Sheepdog]

Aitan is a habitual scammer. Didn't think it was necessary to say that here......until now.

[tat4tat]

?

[Monksdream]

SYTA, new 52 week low

[Sheepdog]

Thanks, I was just hoping you might. I couldn't find anything about it either. It would be a bitch to wait 5 months to get unregistered shares that are not tradeable.

[Sheepdog]

I am concerned about the recent ELOC deal that gives them $18M worth of stock at a 12.5% discount to market. And up to 2.7M of that stock would be free trading per the recent registration statement...if it hasn't already been issued. If it has. that could be what is causing selloff. We haven't had any recent TA updates on the OS.

From a legal standpoint, I don't know that SYTA could refuse to issue any shares to ELOC if they wanted to.

The ELOC deal would give them about 8.5M shares at today's $2.43/share price.. From a legal standpoint, I don't know that SYTA could refuse to issue any shares to ELOC if they wanted to. Were they to be issued Pre Merger, it would make the 10% "makeup dividend" pretty much go away making any overvaluation of CORE a disaster to existing shareholders (if it is indeed overvalued. Personally, I think it is.)

[tat4tat]

I have no idea about the registered part.

[Sheepdog]

Thanks....Do you know if they will first be registered? Or maybe 144 exempt, or restricted?

6 months makes a big difference if this is way overvalued. Will be forced to hold the shares until after everyone else dumps out. If that turns out to be the case, this "dividend" could be pretty much worthless.

[tat4tat]

I hope this drop is due to stock market dramatic decline.

[tat4tat]

Within 6 months of merger that is tp take place 8n the second quarter 2025. That could be as much as 9 months from now.

[Sheepdog]

Does anybody know if the makeup share dividend to existing shareholders will be registered. When will they be issued? At the time of merger?

[Carico13]

IMO SYTA is going to take off today. Get in while it's cheap

[tat4tat]

Where are all of the Wall Street pundits promoting this stock.

[Sheepdog]

Does anybody know what the warrant purchase price is here at SYTA?

[tedpeele]

Per the 6k the number of common will be the $160m / avg price 10 days.

So if $4 is used it will be 40m OS and shareholders will get the equivalent of at least $4 million shares (the guaranteed minimum 10%) -- meaning their shares are then worth $16million - meaning the market cap arguably should NOW be at around $16 million -- ie $10

If the market today assumed it would be worth $16m then the price would go to $10, and here's what would happen. The OS would be 16m after the merger and shareholders would get 1.6m shares - or a 1:1 conversion.

In both cases the market value at the moment of the the merger is $160m

But the market can't force the price to stay at $4 in the first case or at $10 in the second case once the RM takes place.

Right now it is valuing the combined entity at about $48m 1.6m OS x $3 x 10 (assuming 10% to SYTA shareholders)

What justifies the $48 million? You said you use a combination but don't say what it is.

Google AI says

Most small growth stocks are accurately valued primarily through a combination of future earnings projections and relative valuation metrics like price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and price-to-earnings growth (PEG) ratio, heavily relying on analysts' future earnings estimates due to the high growth potential and often limited current profitability of these companies.

But it also says this:

When small growth stocks have no earnings, they are most commonly valued using the price-to-sales (P/S) ratio, which compares the company's market capitalization to its total revenue, as this metric allows investors to assess value even when there are no profits yet, based on the potential for future earnings growth

This is what I had thought, and this arguably justifies what Syata's independent party did to come up with the $160m valuation..if AI is to be believed here.

[Sheepdog]

I favor using several approaches as all of them have their strengths and weaknesses. But they tend to show themselves for what they are after doing several of them and you can make an informed guess. I personally NEVER use a p/s ratio for anything but elimination for consideration purposes because it is very quick. If it passes, that only tells me to check further. If it fails, I can drop it.

[Sheepdog]

I have already stated this. But I will do it again. POST TRANSACTION, the OS will be around 60M shares, not 1M. Please read the transaction details. That is what you need to use. Personally, I see the value in this, post transaction, as only about $1/share.

[tat4tat]

Sounds redundant to me. News about newsletter promoting the company. I am suspicious of Core Gaming motives and ending up with officers in charge of overall company.

[Sheepdog]

Your mistake is that you use current OS to evaluate to post OS, and then extrapolate it. ie- you are not accounting for the dilution that will occur due to the transaction. The current OS will balloon from 1M to approx 60M. Your $22/share valuation is really only $.37 post merger based on your cap of about $22M in coming up with that (you arbitrarily use a valuation of $16M). To come to current market price/share, the company would indeed come to about $160M in valuation. However, this is a circular calculation using $160M to come up with $160M.

It all gets down to what the company will be worth divided by about 60M shares. Knowing Aitan as I do, I expect they will issue tons of preferred shares with a high conversion factor to hide the dilution and many naive investors will fall for it. But it sounds like existing shareholders are not that naive as it appears they have been selling off while they can.

[tedpeele]

Yeah - about 900,000 shares higher on the 6k than the last report. I haven't tried to track down the source of that dilution. They had news today - see my earlier post -- looks like an attempt to create volume/interest.

[tat4tat]

Share price holding up pretty well at just under 3.00 considering 900 Dow drop today, and o news. Where exactly did 1.6 m8llion O/S come from?

[tedpeele]

Yep. I guess you favor a PE approach or something else? My last post explains my thinking more.

The price DID explode to over $9 on the news, but quickly sold off as is the norm on pre-market news plays these days...and selloffs on tiny floats kill the move for the rest of the day.

I'm willing to admit when I'm wrong--and the market is saying I'm wrong but I"m not sure the market is right. I've learned it is often wrong on these small stocks.
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[Sheepdog]

It helps to see your thinking. Thanks.

I guess that explains the explosion in price/share since the announcement, 3.50 pre-announcement going to today's 2.90/share. Suffice it to say I don't agree with this analysis at all. It appears I am not the only one.

[tedpeele]

My understanding is both PE and PS are used but so many companies have no earnings that PS dominates the valuation methods for them...maybe that is not correct. I was encouraged to see that they are operating at breakeven at Core Gaming - and that the cash covers the debt. I was trying to figure out why in the world the stock was selling off - did Core have huge debt? Glad to see they don't.

At any rate I think the selloff has little to do with the actual valuation perception and mostly to do with the quick-flip Pre-Market traders selling at market open and killing any demand. It's a shame because with such a low float this thing could have gone to $20+ instead of just $9 last week.

[Sheepdog]

Ahhh....I see it now. The P/S ratio method is one of the least reliable methods of valuation.....for the very reasons we see here.... And nobody would evaluate the value of a company based on that alone. It would be malpractice for an appraiser to base a company on that valuation in this case.

So how much profit would you expect to see from a company to pay off a 160M loan at 7%? And how much profit does this company have to do that? I know they say they expect to make a profit next year, but it hasn't happened yet.

[tedpeele]

That post you linked to meant to convey that at today's metrics the future valuation of $160m would put today's price at $22 based on the 716k shares outstanding and the minimum ownership of 10% to SYTA shareholders. Since that time someone posted that the outstanding is roughly twice that (1.647m per the 6K) - so that would drop it to around $9.7 for a fair current value - not taking any growth into account. With the projected growth the price arguably should be higher than the average of based on a PS of $2.6 which is the position taken by the review in todays release here: https://247marketnews.com/syta-siyata-mobile/

All based on the accuracy of the $160m valuation for the future.

I posted about the $160m in #902. The $160m seems reasonable based on $80m revs x 2.6 (= $208 million) and adjusting for debt and Syrac losses.

The 6K shows combined financials although they are through 6/30 and are not audited -- but all together enough info to satisfy me that the independent valuation is reasonable.

hope that helps.

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[Sheepdog]

wrong 10%. The question is how you justify a $160M valuation, not how they are going to make up the shortfall from an overvaluation to existing shareholders.

Still looking for your post where you say you explained the $160M valuation.