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I see the term "Short Sale" in the verbiage which is basically the sale of an insolvents holdings at fire sale prices.
And my intention is just to illustrate that the debt that Coretec may assume means that the number of shares to be issued is a moving target. If Dr Kim is THE owner of Core Optics, but he bought the company with a 50/50 split of cash and debt, then only about half the number of shares would need to be issued to Dr Kim compared to a scenario where he bought the company with cash outright.
I agree it will be nice when the speculation period is over and we can see the numbers and shareholders will determine how good things are from now on.
Not going to claim any expertise in these matters, but I've watched a rodeo or two from the bleachers. If isMedia went south of the law and were de-listed, the courts probably stepped in and dictated that their holdings be sold off to help restore those who they were indebted to. Core Optics was apparently the jewel in the isMedia holdings and while those who bought it might have gotten a stellar value, it is likely they did not pay cash. That means the new owners are carrying some level of debt. I'd also say to keep in mind that just because a company is carrying some load of debt, it's not a reason it can't be highly profitable.
Core Optics was owned by that Korean company that ran into trouble and went bankrupt. The current owners had to purchase the company, perhaps out of bankruptcy but it wasn't free. Where would the purchasers get the money to buy a company like Core Optics, worth perhaps 50 to 75 million dollars? You get a loan. Hopefully Coretec can assume the terms of that liability, I bet it is way better than the interest rate you can get today.
It occured to me that Core Optics probably has some debt that has to be delt with. Interestingly, that debt could be part of the reason the deal can close without an R/S. Not holding my breath on that, the share exchange agreement clearly states Reverse Split.
Quikshft - I am pessimistic that the current principals of Core Optics could have purchased the company when it was recently sold without taking on debt. If the Coretec Group simply took responsibility for the existing debt load under the current terms, would that mean the share count that needed to be issued to the current Core Optics owners to compensate them for selling would be diminished?
ChatGPT - Yes, if Coretec Group were to assume responsibility for the existing debt of Core Optics as part of the merger, it could potentially affect the amount of compensation (in the form of shares or otherwise) that needs to be issued to the current owners of Core Optics.
Assuming that Coretec Group takes on the existing debt without modifying its terms, it would mean that Core Optics' liabilities are absorbed into Coretec Group's financial structure. This could impact Coretec Group's overall valuation and financial health, which in turn could influence the negotiation of the compensation package for the owners of Core Optics.
If Core Optics has a significant amount of debt, Coretec Group may need to issue fewer shares to the owners of Core Optics as compensation, as the assumption of debt would already represent a form of consideration in the merger transaction. Conversely, if the debt load is substantial and Coretec Group agrees to assume it, the issuance of shares may still be significant, but it would depend on various factors including the valuation of Core Optics, the terms of the debt, and the negotiation between the parties involved.
In any case, the treatment of existing debt in the merger negotiations can have implications for the overall structure and terms of the deal, and it would likely be a key aspect of the discussions between Coretec Group and the owners of Core Optics.
Concerning warrants at the 8 cent level.
ChatGPT
It's unlikely that Armistice Capital, or any other investor holding warrants with a strike price significantly higher than the current market price, would exercise those warrants unless there were exceptional circumstances or strategic reasons to do so. Here are a few reasons why:
In-the-Money Consideration: Warrants are typically exercised when the market price of the underlying stock is higher than the strike price of the warrants, making them "in the money." Exercising in-the-money warrants allows investors to purchase shares at a price lower than the current market price, providing an immediate profit opportunity.
Cost Consideration: Exercising warrants requires the investor to pay the strike price per share. If the market price is substantially lower than the strike price, exercising the warrants would result in an immediate loss for the investor. Therefore, it's generally more economical to wait until the market price exceeds the strike price before exercising the warrants.
Time Value: Warrants have an expiration date, after which they become worthless if not exercised. If the market price remains below the strike price and the expiration date is approaching, investors may choose to let the warrants expire rather than exercising them at a loss.
Market Conditions: Investors consider the current market conditions, including trends in the stock price, trading volume, and overall market sentiment, before deciding whether to exercise warrants. If they believe that the stock price will increase in the future, they may hold onto their warrants until the market becomes more favorable for exercise.
Chat GPT - The decision to exercise warrants, especially in the context of a pending merger, can depend on various factors and strategies employed by the hedge funds. Here are a few considerations:
Lock-up Period: If the hedge funds have a lock-up period during which they are restricted from selling shares obtained through warrant exercises, they may choose to exercise the warrants early to start the clock on the lock-up period. This allows them to plan their selling strategy and potentially take advantage of future price movements.
Risk Management: By exercising warrants early, the hedge funds may be locking in a profit or hedging against potential downside risk. If they believe that the share price could decline after the merger, exercising warrants early allows them to secure their position at a favorable price.
Liquidity Needs: The hedge funds may have immediate liquidity needs or other investment opportunities that require capital. Exercising warrants provides them with additional shares that can be sold or used as collateral for other investments.
Regulatory Considerations: There could be regulatory or compliance reasons for exercising warrants at a particular time. For example, if there are changes in tax laws or accounting regulations that affect the treatment of warrants, the hedge funds may choose to exercise them sooner rather than later.
Anticipation of Future Events: While the completion of the merger may improve the company's financial position, the hedge funds may have their own reasons for wanting to exercise warrants before the merger is finalized. They may believe that exercising warrants early allows them to capitalize on short-term price fluctuations or take advantage of arbitrage opportunities.
Ultimately, the decision to exercise warrants is based on the hedge funds' assessment of market conditions, their investment objectives, and their risk tolerance. Each hedge fund may have its own unique strategy and timeline for exercising warrants, and these decisions may not always align with the timing of the merger completion.
I am confusing the two funds that invested in Coretec. Alpha Fund is Simon Calton and Testpilot discovered they are holding. Armistice is the Hedge that gave us the six million a few years ago. Keep in mind when we accepted that six million dollars that the company was peddling CHS, and Armistice invested based on that business plan. CHS obviously has not panned out and Elgammal admitted (perhaps let it slip) in that last video interview that it is too costly to compete with other silanes. It is Armistice that I doubt has a good window into the business plan surrounding Endurion, and Coretecs record with Armistice is one strike. Without knowing from the inside, they are probably taking what sure thing they can get at this point.
So it must be the Alpha Fund just dumping what are basically their free shares, because as they exercise those warrants the OS will grow. Not really different that Golden Gate of years past.
Those guys probably don't have a seat at the table, so have no clue more than any of us what is coming so they are just getting while the getting is good, even if it could be better later.
Simon Calton has a seat on the board and has to understand the intricacies of the deal. If he is dumping that would not be positive.
My thoughts are that maybe it doesn’t matter what the price is now, whether half a cent or three cents. Following the completion of the merger the price is going to find a new home based on the facts that are made public. Stats like gross sales, operating income, and the share structure will work to set a valuation on the company that isn’t dependent on the share price ahead of the closure of the deal. Agree or disagree???
Pretty early in the discussion Dr. Elgammal tells us what happened to CHS - it isn't price competitive. He goes on to say that the company, wanting to stay in the "silicon space" pivoted to development of battery anodes. This is probably about the time Kraft left. Elgammal also says he was contacted by the CEO at the time to perform due diligence on the portfolio of patents that Coretec acquired when they merged with Coretec Industries. It is a little disturbing to consider that the cost and dilution shareholders bore to acquire Coretec Industries gained us exactly nothing.
Copy of the 4-16 email message:
March was a very productive month for The Coretec Group (OTCQB: CRTG) as it announced a definitive share exchange agreement with Core Optics LLC. Company leadership expounded upon its details during a March 14 shareholder call and presentation (the full transcript and recording of which can be found here).
The chief takeaways from the call demonstrate the market opportunity ahead, as CFO/COO Matthew Hoffman provided updates and a future outlook of the Company’s Endurion battery program:
• Endurion boasts full coin cell batteries with strong stability, lasting over 500 cycles: an impressive cycle life benchmark that creates clear pathways for the technology to be applied to a number of customer markets. Core Optics’ existing relationships and customer base within these industries create opportunities for partnerships and commercial adoption.
• The Endurion team’s work has achieved new IP in the form of an advanced coating methodology that can extend beyond just battery applications, which will be a major asset in the future licensing of the technology as well as the overall value of the Company.
• Looking ahead to the rest of 2024, The Coretec Group aims to scale up its anode material synthesis capabilities to meet the demands of potential partners. Endurion’s latest progress positions it well for securing development funding, which Company leadership will pursue aggressively as it strives toward the larger goal of making the program a self-sustaining business unit. The Coretec Group’s relationship with Core Optics will also prove essential in the solidification of Endurion’s partnerships and financial goals for the remainder of the year.
The Company also contributed an article to POWER Magazine on the bright future of lithium-ion batteries through the use of silicon anode technology. The piece details the principal caveats hampering si-anode adoption and Coretec’s nanoparticle solution that could overcome them and bring about the next generation of high-efficiency EV batteries.
Lastly, Coretec CTO Ramez Elgammal will soon be featured on the eVTOL Insights podcast. Be sure to be on the lookout for updates regarding its release.
While it’s been an exciting month, the Coretec team still has plenty more, exciting work ahead of it in the weeks to come. Anyone interested in keeping pace with the Company’s news and updates in real-time is encouraged to follow along on its LinkedIn and X profiles.
The market seems to be pricing in the approximate stats I suggested a while earlier. Three billion shares outstanding, two or three million dollars in earnings and a P/E ratio of 20 to 1. Those are fairly pathetic numbers, but using them will get you a price near the close today. Basically I am suggesting the bottom is in, but few seem willing to buy at these levels and that suggests maybe it isn't.
I don't believe the SEC 'approves' mergers as it shouldn't be up to them who merges with who. They just stand by and make sure all the rules are followed.
I would say prove you can make this merger work before trying another, but Mihn Le is a managing partner at 22 Capital Partners. Acquisitions is his day job and he is probably looking forward to additional projects for his firm not necessarily involving Coretec.
Mihn Le - A seasoned executive and entrepreneur with over 25 years of experience in strategy, technology, and real estate development. His career highlights include leading roles at Accenture – managing $500 million in business development, and at DoD, overseeing significant defense and aerospace projects. As a CEO of DSTG, he drove US$10M in business, focusing on big data analytics. As a COO at Cogility, Inc, he managed operations and federal engagements. His tenure at ExxonMobil covered market trading and IT management. Currently, he is a Managing Partner at 22 Capital Partners, with focus on renewable energy and smart city technologies, that includes leading Gramercy District, LLC, a "smart city" development in Virginia. Le holds an MBA from Georgetown University and a BS in Computer Science from the University of Maryland.
With three billion shares outstanding, and a P/E ratio of 20 plugged in you need EBTDA earnings of three million dollars for a two cent price per share.
Not sure why you congratulate your competition on their business milestone - unless they aren't your competition.........
https://www.linkedin.com/feed/update/urn:li:activity:7183165962559324160/
From the share exchange agreement;
(q) Principal Place of Business. Following the Closing, the Parent’s headquarters and research and development and other facilities will remain at the Parent’s current headquarters except that the Company’s management shall have the right to designate a replacement headquarters at an appropriate time.
There is a wealth of information in that document, but to this point it does not appear we are relying on it too greatly to determine what is going to happen. I provided key portions to the ChatGPT bot and asked it to summarize and timeline the major events it contained - results as follows and note that bolds and underlines are by me to call attention to certain details we've been discussing here.
1 Acquisition Announcement: Coretec Group announces its intention to acquire Core Optics, a company with a solid revenue stream and growth potential.
2 Due Diligence: Coretec Group conducts due diligence to assess the financial health, market position, and growth prospects of Core Optics.
3 Negotiation and Agreement: Coretec Group negotiates terms with Core Optics, including the purchase price, payment structure, and any conditions of the acquisition.
4 Share Exchange Agreement: Once terms are agreed upon, Coretec Group and Core Optics sign a share exchange agreement outlining the details of the acquisition, including the issuance of new shares by Coretec Group.
5 Approval Process: The acquisition and associated share issuance may require approval from regulatory authorities, shareholders, and other stakeholders.
6 Execution of Agreement: Upon receiving necessary approvals, Coretec Group and Core Optics execute the share exchange agreement, formalizing the acquisition.
7 Share Issuance: Coretec Group issues new shares of common stock to Core Optics shareholders as part of the acquisition consideration. Additionally, Coretec Group may issue preferred shares to certain investors as part of a private placement to raise additional capital.
8 Conversion Agreement: Holders of preferred shares, including the series C preferred shares, enter into a conversion agreement with Coretec Group, outlining the terms under which their shares will automatically convert to common stock.
9 Reverse Split Consideration: If the issuance of new shares, including the conversion of preferred shares, would exceed the approved share limit, Coretec Group may consider implementing a reverse stock split to reduce the total number of outstanding shares and make room for the newly issued shares.
10 Shareholder Communication: Coretec Group communicates the details of the acquisition, share issuance, and potential reverse split to its shareholders through regulatory filings, investor presentations, and other channels.
11 Implementation: Coretec Group executes the reverse split, if deemed necessary, and completes the issuance of new shares. The company continues to operate with Core Optics as a wholly-owned subsidiary, leveraging its revenue and growth potential to enhance shareholder value.
Yes, everyone has choices and needs to decide. Hold, sell some, sell all, buy more etc. I am holding on to see what happens because my opinion is that even if the acquisition and short term is at the outset weak, the coming months will be positive as the combined company gains traction in its current market which is growing and as it expands into related markets. The wild card is Endurion, there will still be announcements regarding development partners and material delivery and testing and these things need to happen soon based on their own timelines. If the names of these partners are familiar that will create some buzz.
Time is of the essence as is said, Coretec is not the only company trying to bring a version of silicon anodes to the market. Cautiously optimistic here.
That's one option, but the share exchange agreement mentions 'corporate action' aka reverse split. Seems very few here are for it, but we have no voice and it is apparent what they intend to do. The question is - do you buy the dip that follows??? Can't really say without some important statistics.
No doubt, earnings will be critical in determining where the share price lands after the close. Of course the number of shares outstanding will also be critical and I'm leaning towards a number of 3 billion. There are 300 million currently, they will issue another 700 million common shares at the close and also 10 million preferred shares that will convert at the close to 1.5 billion common shares = 3 billion. If you read the share exchange agreement it discusses a 'Mandatory Conversion Event" at closing in which all preferred shares are converted to common shares.
The audit probably was not started until after the last conference call during which Kappers said there were DD "items" to complete. Also, consider that there probably was no need to begin the audit until after the share exchange agreement was signed. If you can't get that far, there's no reason to open the books for an audit. Still could be some time involved to get this completed.
Insightful comment, there is a lot we just can't be sure of. But, there are clues...
Not to be confused with Form 4, which we certainly do not want to see.
Quikshftt - Coretec is a tiny development stage company that has somehow been able to acquire Core Optics which is a privately held going concern. I know the principals of Core Optics will want to be compensated for selling their company. I am trying to determine how this deal is advantageous to the Core Optics principals. Any insight?
ChatGPT - The acquisition of Core Optics by Coretec could be advantageous to the principals of Core Optics for several reasons:
1. Exit Strategy: Selling their company to Coretec provides the principals of Core Optics with an exit strategy, allowing them to realize the value of their business and potentially monetize their investment.
2. Access to Capital: Coretec may have access to capital markets or other sources of funding that could allow Core Optics to accelerate its growth plans, expand operations, or invest in new initiatives that were previously not feasible due to financial constraints.
3. Synergies and Growth Opportunities: By joining forces with Coretec, Core Optics may gain access to complementary technologies, resources, or distribution channels that can help drive growth and unlock new market opportunities. The combined entity may also benefit from synergies in areas such as research and development, sales and marketing, or operational efficiencies.
4. Public Listing: If Coretec is a publicly traded company or plans to go public as a result of the acquisition, the principals of Core Optics may see value in having their shares publicly traded, which can provide liquidity and potentially increase the value of their investment over time.
5. Strategic Vision: The principals of Core Optics may share a strategic vision with Coretec's management team, believing that the combined entity has the potential to create significant value for shareholders and stakeholders in the long term.
Overall, the decision to sell Core Optics to Coretec likely involves a careful assessment of the potential benefits and risks involved, as well as consideration of the strategic fit, valuation, and terms of the transaction. Ultimately, the principals of Core Optics may believe that the deal represents the best opportunity to maximize value for themselves and their shareholders.
We have a little more horsepower here these days, for a long time there were only four or five regular posters but what do any of you think or know about the series C preferred shares that were issued? It appears to me that this is an investment in the business from outside of the company and quite positive in terms of confidence of the investors. Excerpt follows:
Strictly speaking, companies that aim to obtain series C funding are no longer startups. They are usually established, successful companies in their late stages of development, with solid revenues and profits. Their core products or services generate strong demand in the marketplace, attracting a substantial customer base.
Companies seek series C financing for further expansion to reinforce their existing success. Following a series C round, a company aims to scale up its operations and continue its growth. The proceeds from this financing round are most commonly used for entering new markets, research and development, or acquisitions of other companies.
Full article;
https://corporatefinanceinstitute.com/resources/career-map/sell-side/capital-markets/series-c-financing/
The stock market is appropriately closed on Good Friday.
Sorry Pegs there are too many unknown's to have a shot at something that is better than a genuine guess. While we might be able to see what Coretec paid for Core Optics in terms of stock issued, we can't correlate that price to what the company earned in terms of gross sales or profit margin and that is what I think will be the greatest single factor in setting a price per share following the close.
Quikshft - Coretec is issuing stock to purchase Core Optics. 706 million common shares worth lets say two cents each, and 10 million preferred shares worth three dollars each. This to me implies that Core Optics was purchased for around 42 million dollars. So;
ChatGPT - The most commonly used metric in determining the value of a company is the price-to-earnings (P/E) ratio. This ratio compares a company's current stock price to its earnings per share (EPS). It is calculated by dividing the market price per share by the earnings per share.
P/E ratio = Market price per share / Earnings per share
Quikshft - Shareholders have not yet been provided the sales dollars of Core Optics, but if we make some assumptions can we estimate their earnings? We've determined a Core Optics value of $42,355,000 so if we estimate their P/E ratio at 20 to 1 what is the dollar number for their sales?
ChatGPT - To estimate Core Optics' sales based on the given valuation and assuming a P/E ratio of 20 to 1, we can use the formula for the P/E ratio:
P/E ratio = Market value / Earnings
Rearranging the formula to solve for earnings:
Earnings = Market value / P/E ratio
Given the valuation of Core Optics at $42,355,000 and a P/E ratio of 20 to 1:
Earnings = $42,355,000 / 20
Earnings ˜ $2,117,750
Now, to estimate the sales based on the earnings and assuming a P/E ratio of 20 to 1, we can use the formula for earnings:
Earnings = Sales * Profit margin
Assuming a profit margin of 10%, we can solve for sales:
$2,117,750 = Sales * 0.10
Sales ˜ $21,177,500
Therefore, based on the assumptions and calculations, we estimate Core Optics' sales to be approximately $21,177,500.
Quikshft - The problem I see with the above is that it does not account for any debt load that Core Optics might be carrying. If the purchase price of the company was negotiated downward on account of debt, then the whole sales estimate is skewed LOW! We don't have details, so we find ourselves just guessing, but consider;
Quikshft - How does the debt load the Core Optics might be carrying affect the purchase price of the company?
ChatGPT - The debt load of Core Optics would typically affect the purchase price of the company in a few ways:
Valuation Adjustments: The presence of debt can affect the valuation of the company. If Core Optics has a significant amount of debt, potential buyers may adjust their valuation downwards to account for the debt obligations. This could result in a lower purchase price.
Negotiation Leverage: The existence of debt can also impact the negotiation leverage of both parties. If Core Optics has a high debt load, the buyer may have more negotiating power to lower the purchase price, especially if the debt is considered risky or burdensome.
Due Diligence: The buyer will conduct thorough due diligence to assess the nature and extent of Core Optics' debt. This includes examining the terms of the debt agreements, interest rates, repayment schedules, and any associated risks. Depending on the findings, the buyer may adjust the purchase price accordingly.
Deal Structuring: The structure of the deal may be influenced by Core Optics' debt. For example, the buyer may negotiate to assume only certain liabilities or to have the seller pay off or refinance the debt before the transaction closes. This could impact the overall purchase price and terms of the deal.
Overall, the debt load of Core Optics is an important factor that buyers will consider when determining the purchase price and negotiating the terms of the acquisition.
I find myself thinking that the company needs to prove it can maintain and increase the share price following closure of the deal. If there is a reverse split of the stock along with closure of the acquisition that will just add fuel to the fire of uncertainty. That said the share price following closure should be based on the financial performance of the company which is something we don't know right now. The safe/conservative estimation is that there are 1.5 billion shares approved and that they will all end up in the float. If that is true, with a stock price of two cents the market capitalization (value of the company) of the combined company will be $30 million - just multiply two cents x 1.5 billion. Is the new Coretec a 60 million dollar company? That makes the price per share four cents with 1.5 billion outstanding shares. If in the re-organization we end up with more approved shares, say three billion? Yeah lets not go there. The share price is currently in the gutter, if the coming deal doesn't boost the value of our holdings SIGNIFICANTLY then the road to making a profit on your investment might be a long one depending on where your break-even point is. I will admit mine is well above two cents. If your break even is ten cents? What is the company going to do the cause the price per share to increase by a factor of five? Given that the Core Optics business is established and chugging along well, it's not likely that business is going to cause the price per share to increase five times, at least not in the short term. The wild card is Endurion, and that is the reason to stick with this as I see things.
Quikshft - Based on our conversation this far, what reasons are there for Coretec to effect a reverse split of its stock after the deal with Core Optics is finalized?
ChatGPT - Based on our discussion, here are some potential reasons why Coretec might consider effecting a reverse split of its stock after finalizing the deal with Core Optics:
Uplisting to a Senior Exchange: Coretec may seek to uplist its shares to a senior exchange like the NASDAQ or NYSE. Senior exchanges typically have listing requirements related to minimum share price, and a reverse split could help Coretec meet these requirements.
Enhancing Perceived Value: A higher share price resulting from a reverse split could enhance the perceived value of Coretec's stock in the eyes of investors, analysts, and potential partners or acquirers.
Reducing Share Overhang: Coretec may want to reduce the number of outstanding shares to create a tighter share structure, potentially reducing volatility and dilution concerns for existing shareholders.
Meeting Investor Expectations: Some investors may view a higher share price resulting from a reverse split as a sign of strength or stability, which could attract more institutional investors or funds.
Improved Market Perception: A reverse split could improve the market perception of Coretec's stock, making it more attractive to a broader range of investors and potentially increasing liquidity.
Aligning with Industry Peers: Many companies in the same industry or sector may have higher share prices, and a reverse split could bring Coretec's share price more in line with its peers, enhancing its competitive positioning.
Capitalizing on Positive Developments: If Coretec anticipates positive developments or milestones following the merger with Core Optics, such as increased revenues or market opportunities, a reverse split could be timed to capitalize on these developments and boost investor confidence.
Ultimately, the decision to effect a reverse split would depend on various factors, including the company's strategic goals, market conditions, and investor sentiment.
Quikshft - What are the negative aspects of a reverse split in this situation?
ChatGPT - While a reverse split can have potential benefits, there are also several negative aspects to consider in Coretec's situation:
Perception of Financial Weakness: A reverse split may be perceived by some investors as a sign of financial weakness or desperation, especially if it's done primarily to meet exchange listing requirements or artificially boost the share price.
Shareholder Dilution: If Coretec implements a reverse split without fundamentally improving its business prospects, existing shareholders may experience significant dilution of their ownership stake. This dilution can occur if the reverse split leads to a decrease in the number of outstanding shares but does not correspondingly increase the company's overall value.
Potential Market Reaction: The market's reaction to a reverse split can be unpredictable. While some investors may view it positively, others may interpret it as a negative signal about the company's future prospects, leading to selling pressure and further price declines.
Lack of Fundamental Change: If Coretec's underlying business fundamentals remain unchanged, a reverse split may only provide a temporary boost to the share price without addressing the root causes of any underlying issues.
Liquidity Concerns: A reverse split can sometimes reduce liquidity in the stock, as it may lead to higher share prices and fewer shares available for trading. This reduced liquidity can make it more difficult for investors to buy and sell shares at desired prices.
Potential Rejection by Shareholders: Some shareholders may oppose a reverse split, especially if they believe it's being done primarily for short-term gain or to benefit company insiders at the expense of retail investors.
Risk of Failure: If the reverse split fails to achieve its intended goals, such as attracting institutional investors or improving market perception, Coretec may find itself in a worse position than before, with diminished shareholder confidence and limited options for future financing or strategic partnerships.
Overall, Coretec must carefully weigh the potential benefits and drawbacks of a reverse split and consider whether it aligns with the company's long-term strategic objectives and commitment to creating sustainable shareholder value.
Interesting. Not sure how Indolium fits into the picture but I think Dr Kim mentioned that he was working on establishing a gigafactory in the US? Posco in an interesting company that Dr Kim did mention in the quote you provided, and they are working with General Motors on a US installation. Perhaps this it the gigafactory Dr Kim is involved with?
https://investor.gm.com/news-releases/news-release-details/gm-and-posco-chemical-will-build-new-north-america-factory
You would have to read the terms of the options that are outstanding, but at least it appears that those ARE subject to the effects of a reverse split. (unlike the series C preferred shares) Lots of those options are executable at eight cents or higher, and they don't persist forever and some of them may expire before they can be executed.
Quikshft -
Coretec has outstanding options granted to certain individuals. What happens to those in a reverse split?
ChatGPT
In a reverse stock split, the number of outstanding shares is reduced, which can affect the value and terms of existing options. Typically, when a reverse split occurs, the number of shares subject to each option is adjusted proportionally to reflect the new share count. The exercise price of the options may also be adjusted accordingly to maintain their value relative to the new share price after the reverse split. However, the specific terms of the options and any relevant agreements or policies of the company would determine the exact treatment of the options in a reverse split situation.
Quikshft -
If the company now has 285 million shares outstanding, based on the terms of the share exchange agreement how many will be outstanding when the deal closes?
ChatGPT
Let's break down the terms of the share exchange agreement to determine the number of shares outstanding after the deal closes:
Total shares outstanding = Existing shares + Newly issued shares
Total shares outstanding = 285,000,000 + 705,561,076 (common stock) + 10,000,000 (preferred stock)
Total shares outstanding = 285,000,000 + 705,561,076 + 10,000,000
Total shares outstanding = 1,000,561,076
So, there would be approximately 1,000,561,076 shares outstanding after the deal closes.
Quikshft -
So the preferred shares are just lumped together with the common shares?
ChatGPT
Yes, that's correct. In the share exchange agreement, the preferred shares are convertible into common shares, so they are considered part of the total outstanding shares of the company. When the deal closes, the preferred shares will be converted into common shares according to the agreed-upon conversion ratio, and they will be included in the total outstanding shares of the company.
Quikshft -
Well those preferred shares convert into 1.5 billion common shares. The approved shares number is only 1.5 billion. Doesn't look like they will all fit.
ChatGPT
You're correct. If the preferred shares convert into 1.5 billion common shares and the approved shares number is only 1.5 billion, it seems there might be an issue with accommodating all the converted shares without exceeding the approved shares limit. In this case, the company might need to take some action, such as a reverse split or obtaining approval for additional shares, to accommodate the conversion of the preferred shares.
Also mentioned in the call was battery test equipment. Sounds like something right up the Core Optics alley and as the battery industry grows it stands to reason that the need for appropriate test machinery will grow with it. Ran across this article and it is a good primer on the subject.
https://www.batterytechonline.com/testing-safety/ev-battery-testing-ensuring-quality-reliability-and-rapid-innovation