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However this story ends it will surely be an interesting one.
Rory has told us this is not your typical OTC. Doing a RS would be very typical, so I'm going to rule that out.
Rory told us that he will raise capital, uplist, and acquire a new company simultaneously. It's not clear how that will be done but those are his words.
At the end of the day, you either believe the things Rory tells you or you don't. It's easy to believe him when the stock is going up and its hard to believe him when the stock is going down.
Reading the S-1 I think I may have found the answer. 15 mill shares of preferred stock not yet issued. That can be used for capital raise at .66 per share to get to 10 mill.
Not nearly as exciting as getting the share price to 3 or 4 but would still do the job. Of cos there still needs to be the appetite for 15 million in preferred shares.
200 million was mentioned because that's the fully diluted share count once u add in warrants and options yet to be exercised.
I'm not sure how many shares Rory could actually sell without raising AS. Which, to your point, the company may simply expect to raise at a higher share price. At 3 or 4 pps the dilution is minimal. The question, is how do we get there?
From the S-1. This one had me a bit stumped. I think this has to be a typo. The date should be Aug 4 2017
On August 4, 2018, we issued to our Chief Executive Officer 3,750,000 restricted shares of Common Stock with a fair value of $562,500 based on a price per share of $0.15, which was the market price of our Common Stock as reported by the OTCBQ on the issuance date. We issued the shares in reliance on the exemption from registration pursuant to Section 4(a)(2) of the Securities Act.
Yes and he went from an I can't say much posture to I'm about to tell it all posture. I'm Very intrigued to say the least.
Rory is very faithful to his long term share holders. The headz up is for them. If you know him well then it makes sense. Most longs subscribe to his news letter. Traders, probably not.
Whatever the quiet period was...Rory is now ready to talk. He made that very clear. And I highly doubt he'll just talk without some PR's attached. Things will be done in a very official way from now on. Man...sounds like an incredible week ahead.
With Rory releasing this news letter slightly before the market closed, it seems he was giving his followers/shareholders a chance load some more shares before Monday. Seems like Rory is ready to unleash the beast. we could get some news Monday before market open. Anybody not in would not have a chance to get in below a dollar. The timing of that news letter seemed very intentional. The traders may get blindsided.
"We get it, everyone is dying to know what it is that Rory will be discussing in his upcoming SHAC video! So, I did everyone a favor and asked him. "Hey Rory, what is it that the investors can expect to hear?" Rory turned his head and with a very serious look he said, "I intend to really get into it." Get ready y'all!
Lets try this:
1. Revenues will increase the share price. Starting in 3rd quarter
2. Big partnership will increase share price.
3. Once share price is higher, they can raise some money without much dilution.
4. 200 million fully diluted is a pretty manageable share count.
5. Potentially will need to increased Authorized a bit but not much to allow for more share issuance (not sure of this though).
6. Walla....we can uplist
Post uplist
7. Once mature and substantial revs start rolling in Rory will initiate share buyback. If we are not bought out by then.
Well, that seems like a reasonable alternative strategy.
I'll say this, it would be pretty silly for oracle to push a product it didn't use themselves. Oracle will use nfusz for internal and external/sales communications. I have no doubt. And any PR from them will come once that part is online as well. That's what makes sense. That's what we should expect.
A few things to note different from the last LHA PR regarding updates.
1. There is a specific time mentioned-More resembling an actual earnings release.
2. This isn't called a SHAC anymore. Simply a Video based shareholder update. Terminology starting to change as we mature as a company?
3. Ability to submit questions in advance.
I am expecting the 10Q to be released after market closes then the video will discuss it.
Other PR's could come before the video and the after market closes as well but best to not expect it. Timing of big PR's doesn't usually coincide with earnings releases. Still possible though.
Did the stock run in advance of the marketo and oracle 8k? The news doesn't always leak. Sometime the stock trades counter to the big news.
Look, Rory will reward the long share holders. You wont get the opportunity to know when the news will hit. It will come without warning when despair is at its peak.
Add in this recent rumor
Live Nation merger
and you can see even more potential
Ah sorry I didn't see that post but you are spot on. In fact I can't draw any other conclusion for him to be there.
This is a pretty big deal. What's more important than just Howard Stern is who he works for. They will be visiting his studio which is at SiriusXM in Rockefeller Center. SiriusXM is starting to create more video from their many live shows.
Making that video interactive so advertisers can place clickable products within the video seems like a likely follow up conversations from this visit.
Pay attention to this lead imo
Again, once you close out the walk out video you can click on all those links. The "click here to start today" is partially unclickable until you close out Alice.
You have to exit the walkout video before you can click on any side bar links. That stumped me for about 3 seconds before I realized why I could't click on those.
Part of the new IR Firm's job is to create more awareness and convince investors. see the quote below:
The IR firm also arranges meetings between the company management and large institutional investors, or the “buy side,” as well as analysts at brokerages, or the “sell side.” The goal is to make buyers and sellers of the stock comfortable with the company’s management, Bushee says. “A lot of these firms are loss-making firms,” he adds. “You can’t value them on price-earnings models, but instead must rely on whether the management has a good idea, whether it has a good business plan and whether it is doing the right things to get to profitability. A lot of bets investors are making are on the management, not on the financials.”
People like options. Amazon charges yearly for prime. Helps recognize revenue faster perhaps, less transactions may keep cost associated with billing lower. It's more profitable for the company to collect yearly and it's still reoccurring.
In addition, our market intelligence services features investment community targeting, perception studies, non-deal roadshows and retail stockbroker outreach, while our capital markets advisory services include pre-IPO, IPO and uplisting support.
Thanks Trding, very helpful discussion for me and hopefully for others that don't have the right information.
And for all longs out there. Let Trding be your example of how to hold a proper, informative discussion.
This is how the board should be used. Thanks again!
It's a good thing to understand how aggressively or not the warrant holders are exercising their warrants and can help explain why the stock is trading like it is. If they are converting fast then they may not believe in the long term for this company and vise versa.
Its an important piece of the overall picture and one of the many indicators I think it's good to track.
If Rory is successful with revs it wont matter much but that kind of overhang in the stock may give us plenty of time to buy more.
Ah ok I see now. I didn't realize those were cashless. Are most of the warrants cashless?
How does Rory do more capital raising if our fully diluted share count is near the 200 mill AS count? Can more shares still be issued? Depending on share price it may not take that many once a raise is necessary.
Also can you help me make sense of this part of the 10Q: Particularly the last part where it describes the options and warrants as being anti-dilutive. How is that so?
As of March 31, 2018, the Company had a total of 22,447,225 options and 30,107,413 warrants outstanding,
and the potential issuance of approximately 11.2 million shares of common stock upon conversion of notes payable. These shares were excluded from the
computation of net loss per share because they are anti-dilutive. As of March 31, 2017, the Company had total of 17,530,953 options and 18,455,264 warrants
which were excluded from the computation of net loss per share because they are anti-dilutive.
I'm sure we will see some other warrant that were exercised in the next 10Q. Hard to say how much. The last three months were, like you said, approx 3 mil. Although some of these were options and some warrants. I really wasn't clear if this was from Kodiak. Perhaps
On April 19, 2018, 487,620 options were exercised and converted into 487,620 common shares at $.07. The Company received $34,133 upon exercise of the
options.
On April 27, 2018, a total of 2,000,000 warrants were exercised in a cashless exercise in exchange for 1,884,869 common shares.
Thanks trding, I definitely appreciate your response. Hard to get accurate info around here. I would love to get your opinion on my original post about this:
I want to take a closer look at what Rory means when he says we are fully funded. Is he counting on the the capital gained from warrants being exercised? I believe he is.
The fully diluted share count is around 200 mill. If we are now at Approx 160 million outstanding then there is 40 million left of warrants that the company can receive capital from, or about $4 mill.
I believe his relationship with Oceanside and some of the other holders is such that he can get them to exercise as needed. (Definitely speculation)
If we say an average of .10 for these warrants we potentially have 4 mill of capitol available if all of these warrants are exercised.
That's a lot of shares that can hit the market. The question is can Rory get ample revs in time to prevent needing capital from the warrants and eroding the share price.
Other points of interest: Rory has alluded to acquisitions and a capital raise for uplist. I'm not clear where that money would come from. Given the fully diluted share count is at the 200 mill AS. I think you would need to raise the AS to be able to achieve more financing. Thoughts?
Bottom line: Solid near term revs makes this post pointless, and that's what we are counting on.
From the 13G
Percent of Class: 6.85%, calculated based on 158,302,146 Shares comprised of (i) 152,126,286 Shares outstanding as of March 30, 2018 as
indicated in the Issuer’s Annual Report on Form 10-K filed on April 2, 2018 and (ii) 6,175,860 Shares that may be acquired on the
exercise of warrants.
Well Mechee, that's how it works. I don't make the rules. Any basic search will give you the same answer.
OK, I don't think that is the case. When Oceanside exercised their warrants the OS increased. Which obviously tells me they were not included in the OS count, meaning not a fully diluted count. If all warrants were included we wouldn't see the OS go higher, but anyway i'll try to reach out to the company to confirm. Thanks for the response.
That's just not true. Just a basic search will prove otherwise.
Shares outstanding can be calculated as either basic or fully diluted. The basic count is the current number of shares. Dividend distributions and voting in the general meeting of shareholders are calculated according to this number. The fully diluted shares outstanding count, on the other hand, includes diluting securities, such as warrants, capital notes or convertibles. If the company has any diluting securities, this indicates the potential future increased number of shares outstanding.
Im saying that our fully diluted share count is equal to the authorized amount. Once you factor in warrants and options.
Hey Stream,
I don't mind being wrong on this but from the 10-Q:
As of March 31, 2018, the Company had a total of 22,447,225 options and 30,107,413 warrants outstanding.
Warrants are only included once exercised. Right now they are a part of the fully diluted OS but not the OS we keep referring to.
I'm not saying it will matter much if we are successful but it is a bit of overhang while we try to get moving higher again.
I've watched all the shac's thanks. Warrants aren't calculated in until they've been exercised. I'm certain of that. Once exercised it becomes issued stock and counted towards OS.
There is 40 million warrants not exercised. I don't have a list of all the warrant holders in front of me but fully diluted share count is approx 200 million.
That's why Rory always uses 200 million as an example. If we were to get bought out today we would use 200 million share count because of the outstanding warrants.
I want to take a closer look at what Rory means when he says we are fully funded. Is he counting on the the capital gained from warrants being exercised? I believe he is.
The fully diluted share count is around 200 mill. If we are now at Approx 160 million outstanding then there is 40 million left of warrants that the company can receive capital from, or about $4 mill.
I believe his relationship with Oceanside and some of the other holders is such that he can get them to exercise as needed.
If we say an average of .10 for these warrants we potentially have 4 mill of capitol available if all of these warrants are exercised.
That's a lot of shares that can hit the market. The question is can Rory get ample revs in time to prevent needing the capital from the warrants and eroding the share price.
Other points of interest: Rory has alluded to acquisitions and a capital raise for uplist. I'm not clear where that money would come from. Given the fully diluted share count is at the 200 mill AS. I think you would need to raise the AS to be able to achieve more financing. Thoughts?
Bottom line: Solid near term revs makes this post pointless, and that's what we are counting on.
You make some good points here. I think the overall strategy that Rory is implementing is probably the single biggest differentiator.
I look at a company like https://corp.hapyak.com/platform/ and they seem to have much of the same features, including a CRM component.
But look at the price point to utilize the CRM. It's so much more expensive.
Rory is going for wide spread adoption by providing a low cost and simple to use platform. By Teaming up with the large CRM companies and also providing a stand alone solution he can capture the entire market. Any size company has the ability to use this tech. It was really quite brilliant.
Not to mention all the other areas he's expanding the business in to. So he took something that was already possible but he made it so much better. This company will be the one to take interactivity mainstream.
I really can't wait to see how advanced this interactivity and entire platform really becomes.
We can only hope this becomes a SiriusXM. Siri has over 30 million paying subscribers and sports a 30 billion dollar market cap. Imagine...that stock traded at 5 cents during the financial meltdown back in 09'. Now almost 7/share.
It's all about numbers. We need volume. And we have many different ways to get volume. The nice thing about this business is the expenses are very low, so on a per share basis it will be easy for us to do well if we have decent subscription volume.
Joint PR and quotes and team selling "by invitation". Let's see if this happens. An invitation is meaningful. Since Rory put the PR language in the 8K i'm quite sure there was an invitation.
I agree it's hard to explain some of the other verticles such as health and teach. We have not seen them yet. I believe a demo is coming soon for teach, i think that's what Rory said.
Ahhh ok, thanks for the breakdown, although that comes out to slightly over 200 mil. So those are employee vested options that can be sold into the market at any time?
I see now why Rory always uses the example off 200 million OS.
200 mill is total authorized. What's fully diluted share count? I can't imagine we have 44 million convertibles existing. See definition below:
“Fully-Diluted Basis” shall mean the assumption that all options, warrants or other convertible securities or instruments or other rights to acquire Common Stock or any other existing or future classes of capital stock have been exercised or converted, as applicable, in full, regardless of whether any such options, warrants, convertible securities or instruments or other rights are then vested or exercisable or convertible in accordance with their terms.
We should at least know how many more warrants exist.