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The change of name and stock symbol is expected to result in the company changing its CUSIP number.
Am I correct in reading the pr that the entire batch was sold as warrants as an aggregate price of 3? That's interesting, as that would imply that the price would be expected to significantly increase above the warrant exercise price. It also means that the OS hasn't changed.
Assuming the exercise of all 6,667,000 warrants at the exercise price of $3.75 each, and assuming the Company maintains the conditions necessary for a cash exercise, the total additional gross aggregate proceeds to CVSL would be $25,001,250
Highest volume day I've seen (~43k) since I've been following CVSL (adjusted for before split ~860k). Still not a ton, but more than I ever remember. Something seems to be brewing :)
We'll probably see the S3 approval pretty soon or some sort of announcement based on this volume.
I've never actually found a reference to the IEH compensation in any of the SEC filings, so I can't be sure they really ever were compensated that much, I wouldn't doubt if they weren't based on the results of that report thou... Which was pretty much nil. I thought they were, based on the report disclaimer, but none of the filings show that amount of stock compensation (please point me to it if you find it, because I haven't been able to).
My point about pumper was that he couldn't own multiple millions without hitting the 10,% rule.
There is also a 7.5M float so there are plenty of people who have shares they can sell, it's odd to blame it on one person, even if they do decide to sell, it's the stock market.
If Scott Pumper actually had millions of shares he would be considered an insider and as such would need to disclose and file with the SEC for all transactions. As it stands he doesn't have millions of shares, he does have a decent amount as listed in SEC filings, but I doubt he's 'dumping' anything since that wouldn't accomplish much.
It's just EOY selling, I've been thinking of that myself to offset some other gains I've had, but I've yet to pull the trigger.
w00t!
That is alll, one more milestone reached, CVSL!
Remember, all there is really only one reason to post neg. comments on a stock message board.
my bet is still on the nyse mkt. I've been reading this as only the offering was withdrawn, which I'm pretty sure is separate from the uplist. You don't need an S1 registration for an uplist, since the securities are already registered and the CERTNYS for the nyse mkt has already been issued.
That's my take, and I definitely could be wrong, we'll know in a couple days though.
http://money.cnn.com/news/newsfeeds/articles/prnewswire/DA79024.htm
One more question answered...and I like the answer.
Well, I for one think this is a better outcome. NYSE MKT without the offering and dilution. I felt the offering as a necessary evil for the uplist, but it seems as though it's not necessary and I'm happy about it. I had always wondered, but couldn't pin down, whether the uplisting was dependent on the offering. I thought it was but I'm happy I was wrong. Since rochon converted his note, I think we now meet the minimum shareholder equity requirements.
I have a feeling the flub up from Cantor had something to do with pulling the offering, but maybe not.
Plus, the offering actually seemed to present a shorting opportunity for those who can (e.g. hedgies) based on the initial offering range, look at the short interest increase over the past couple months. It's still really small, but larger than ever for CVSL given the light volume. A person could have shorted between 15-18 and be almost guaranteed a cover in the offering range...alas that won't happen now.
In the roadshow video, the 'proprietary acquisition' deal channel that was shown on that pie chart was actually 15-16B IIRC...it's one of the things that grabbed my attention.
form Form 8-A12B has just been filed...securities are registered on the NYSE MKT.
http://www.sec.gov/Archives/edgar/data/1403085/000110465914081706/a14-12703_128a12b.htm
The interesting thing about that it seems any of those potential institutional investors will now have to buy at retail prices instead of offering prices if they are inclined to invest in CVSL.
I saw that passage and figured that was the cause. I haven't had time to call myself, so thank you. It's also in the 10Q filed last Friday.
Well, at least we'll see the 10Q today, should give us something to ponder.
The only comment I would have is that the offering price is what the underwriters buy at, which is a discount to the market price. They need to make money, so usually the the market price will be higher than the offering price, otherwise the underwriters make no money and for lack of a better term, look stupid.
Keep in mind that this isn't a real IPO, but the concept remains the same for any offering I would think.
The Offer Price
The offer price for an IPO typically is set a few days before the initial offering date. The lead underwriter for the IPO sets the offer price based on the bank's analysis of the company's value and the projected demand for its shares. In the days before the IPO, the banks and brokerage firms which will receive the shares ask their customers about the interest in the shares at the projected price. The offering price is set in the last couple of days before the IPO. This is the price paid by the institutional investors who commit before the IPO to buy shares at the offer price. Individual investors rarely get an opportunity to buy IPO shares at the offer price before trading begins.
Opening Price
On the day of the IPO, the investors who bought at the offer price already own shares when the stock market opens. Some of these investors will offer shares for sale at the opening of the market and the initial trading price will be determined by the number of buy orders lined up to buy shares on the open of the stock exchange. The underwriter of the IPO shares attempts to set the offer price at a level so that the share price will immediately start to trade at a higher value when the shares start trading on the open stock market. If the IPO works as planned by the underwriter and the new IPO company, the opening price will be higher than offer price.
It looks like they took it down, sorry.
Ack nevermind, based on that PR, the uplisting isn't effective yet, although it does appear in the exchange: https://www.nyse.com/quote/XASE:CVSL
I think they (the bookrunners et al.) are in the price discovery phase right now. It seems a thought it can take up to a few hours or so based on what I've read.
I find it interesting that the offering price seems to have been set @ $13, above the red herring price range, so I'm really curious to see what the opening price after discovery will be (what the public is willing to pay).
LOL, all I did was google "CVSL IPO" a little while ago and it was there :)
http://www.retailroadshow.com/custom/cvsl.asp
for those who haven't seen it...
If you contemplate that larger early investors who will throw $1-10M into the offering, you have to give them a big incentive to spend that kind of cash, and the only real incentive is that there needs be an upside to them. If CVSL was fairly priced over the past few months, there wouldn't be much incentive to buy in (no value prop). Now they are looking at possible easy double digit gains for their money (and consequently anyone else that buys at the offering price)
I does seem low, and I'm am disappointed that the offering price isn't higher. Considering the above it might be justified, but I just have to ride it out at this point and see. I do agree with risk54 that this stock will probably look completely different in 6 months.
And yes I'm trying to justify things here ;) Since I haven't actually lost anything, beside profits now (hitting my head on the desk for not selling...as always) there isn't any upside to me selling at this point, and from these levels I would think we go up post-offering.
Based on my reading, between 15-20 or so seems to be a good place to price an offering to attract the big institutions. The 'growth' is relative to the investors involved, and I think CVSL is targeting a high price since that is more attractive to a certain type of investor (institutional and high net worth) Seems to me the room to grow is actually unbounded, since it's more or less dictated by the market cap. I don't think CVSL is trying to attract retail investors at all with this offering.
Not many stocks have an (re) ipo in the less than $10 range, I think that would have a negative aspect to it, but that's all my opinion, and I didn't even stay at a holiday inn last night, so YMMV :)
some decent information here: http://www.mwe.com/publications/uniEntity.aspx?xpST=PublicationDetail&pub=6579&PublicationTypes=d9093adb-e95d-4f19-819a-f0bb5170ab6d
2. maintained a closing stock price of $4 (or, in the case of the NYSE Amex, either $3 or $2, depending on the applicable listing standard) per share or higher for a sustained period of time, but in no event for less than 30 of the most recent 60 trading days prior to the filing of the initial listing application and prior to listing; and
Exceptions to the Additional Listing Requirements
The new rules include two exceptions. First, a reverse merger company is exempt from all of the new rules if it is listing in connection with an initial firm commitment underwritten public offering generating gross proceeds of at least $40 million (or, in the case of the NYSE, where the proceeds satisfy certain aggregate market value of publicly-held shares requirements). Second, a reverse merger company will not be required to comply with the minimum price requirement described above if it has satisfied the one-year trading requirement described above, has filed at least four annual reports with the SEC or other regulatory authority containing all required audited financial statements for a full fiscal year commencing after filing the information described above and is not delinquent in its filing obligations with the SEC or other regulatory authority.
Finally! Been waiting for this to happen for months. The next stage begins...
To be honest, I hope it goes down a bit more :) After the filing today I really want to buy more. But, given the measly selling volume I don't think it will budge much more.
The more I think about the ask orders that haven't moved, the more I think that people in the know have an idea of where this will be priced and want to make sure that they can get in at a decent price once the offer commences.
If I'm restricted from buying stock under $5 or so and I want to get in at these levels (offering price adjusted) before the market, what's the best way to ensure a good price? Keep it right here until d-day...that's what I would do anyway -- if I had the resources :) Seems pretty low risk based on the avg. volume.
Interesting, the way I read it, this announcement effectively nullifies the second tranche closing unless somebody tries to gain significant control of the company. I was waiting for something regarding this to happen, as it's one of the only red flags I've seen in the company. Now that it's gone, I would expect the offering to commence shortly.
Notwithstanding anything to the contrary in the Share Exchange Agreement, the Shareholder hereby irrevocably authorizes and directs the Parent’s transfer agent to place a permanent stop order on the Second Tranche Parent Stock and to add a corresponding restrictive legend on the certificate or certificates representing the Second Tranche Parent Stock
Then immediately BKMM comes out with a ridiculous ask, either shorting or trying to keep this down until the offering.
I have a feeling it's being kept in a channel in order to control the valuation until the uplisting. IMO it's better to be undervalued so when the offering kicks in CVSL goes up when everybody is watching, as opposed to now when none of the big boys can buy in.
That being said, I have zero clue what the valuation of CVSL should be, so I'm just as likely blowing smoke also :)
Tomorrow's the end of Q3, maybe something will start to happen, these last few months have been slow as molasses.
IIRC Q3 and Q4 are the best for this sector, so I'm hoping CVSL can come up with some good numbers and finally get this show moving out of OTC land. I got spoiled with all the acquisitions and news last year :)
I was originally thinking that too, but if that occurs the OS will only be ~30M and float ~19M post offering (25M + (3.5M @ 20)), which imo is too small a share structure for a company on the NYSE MKT. I base that on some of the listings I've been researching, which I admit doesn't count for much :)
Looks like the Rochons (Richmont and CVSL) are movin' on up :)
http://bizbeatblog.dallasnews.com/2014/09/uptowns-frost-tower-lands-prime-tenant-for-top-floor.html/
“Our world headquarters is going to reflect not only what we have built over the last 25 years but even more importantly what we are in the process of building now and for generations to come,” Rochon said. “We want our company to attract the very finest professional talent, especially in specialized areas such as finance and accounting.
“We know that having our headquarters located in the heart of the city is tremendously appealing.”
Also noticed a new MM BTIG popped in today, we'll probably start seeing more and more pop up over the next few weeks.
https://wwwca01.btig.com/
Never seen this one in pennyland before.
The offering price range set forth on the cover of this prospectus has been determined by negotiation between us and the underwriters. Among the factors considered in determining the offering price range for our shares of common stock to be offered in this offering were:
•the price and trading history of our common stock on the OTCQX Marketplace;
•our history and our prospects;
•the industry in which we operate;
•the status and development prospects of our services and proposed services;
•the previous experience of our executive officers; and
•the general condition of the securities markets at the time of this offering.
How I understand it is that shareholders of record are different than U and I as retail investors (beneficial shareholders). There are many more than 54 total shareholders of CVSL (I would guess).
A registered holder is one whose name appears on the books of the depositary as a registrar; the registered holder is considered the owner of record. A beneficial holder is one whose holdings are held in a name other than their own, such as the name of a broker, bank or nominee.
Looks like CVSL has really expanded their 'CVSL Connections' Reward programs and added a bunch more companies: Viviant, Bond Streat, Square Inc, Protect America, XOOM Energy. All shareholders can take advantage, FWIW I actually got a nice discount using this with Hertz on the last vacation I took.
The rewards are targeted at their industry and consultants, but I found it interesting none the less.
http://cvslconnections.com/
http://cvslconnections.com/rewards/#.VAswrvldUeo
Selling $15M of unneeded property and using the proceeds to pay off debt is not anything akin to swindling. It's a great move that may likely have been initiated by Cantor Fitzgerald advising them to reduce their debt, which is much more attractive to investors than wasted assets.
L O L
That's a pretty killer PR! Very happy to see that CVSL has no more bank debt and they have been busy paving the road, getting ready for the traffic so to speak.
Which is an immediate 150% profit from where we sit today at .80
That would be an absolutely ideal scenario. The $20 price target comes from communications with CVSL's Scott P., and a 10:1, or even 5:1, RS would give us a pretty good SS so there is some basis to this scenario ;) but it is still conjecture.
http://en.wikipedia.org/wiki/Form_S-1
They are saying they are doing an uplist and stock offering (re-ipo ) and hope to raise ~$70M during the secondary offering. This will only happen once they uplist to the NYSE MKT and liquidity follows. This form outlines their prospectus and plan.
If the target price is $20 and the offering is successful at that price, that equates to ~3.5M shares being added to an OS of ~50M and float of about 16M after an assumed RS of 10:1. Of course the number of shares offered could vary depending on how the institutions view CVSL (whether the price goes up or down).