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So if there is a R/S, it's only so that he can have 95% of all outstanding shares. The old BMBM will still represent 5% share of all 3 companies. And then probably upgrade to another Exchange. It's way better than 100% of no business at all!
Sorry, read your post incorrectly. You are right.....no R/S unless 2 other companies reverse merge also!
Wrong. This one's already happened. He has 2 more companies that MAY also be reverse merged, in which case the R/S and lower % of the old company's ownership. But right now, this thing is done.
Mr. Turlov is seeking a more sustainable, long-term strategy to allow his customer base to participate in the U.S. markets because of what he perceives to be the growing disfavor of omnibus clearing accounts for foreign financial institutions among regulators and U.S. financial institutions as well as customer concerns that the Freedom Companies expose them to attendant political, regulatory, currency, banking, and economic risks and uncertainties in their respective countries of operation. To meet this perceived need, Mr. Turlov organized FFIN in August 2014 to serve primarily foreign clients referred from Freedom RU and Freedom KZ as part of a strategy to provide foreign customers with access to the U.S. securities markets within a single vertically integrated financial services firm. Mr. Turlov further believes that fully integrated transparent retail order execution may be a foundation for offering additional services and products in the future such as funds management and investment banking.
Since the sale of its oil and gas operations and assets in September 2011, BMBM has investigated acquiring possible other assets and operations to provide potential value to its stockholders. During 2014, management initiated discussions with Mr. Turlov, who conducts securities brokerage and financial services businesses in Russia, Kazakhstan, and Cyprus through the Freedom Companies, about a possible combination of those businesses and a U.S. securities broker-dealer then being formed (FFIN) to build an international, broadly based brokerage and financial service firm. This integrated, international firm could offer the financial opportunities, relative stability, and comprehensive regulatory reputation of U.S. securities markets to meet the growing demand from an increasing number of investors in Russia and Kazakhstan.
Been waitin' for this for a while. Knew it was coming....kept all filings current. Not a question it'll soar, just a question of how high!
Not gonna stay down here long!
This thing sat empty for 3 years! No business at all. Some people just want out.....just when it comes alive!
Cash on hand alone worth $.10/share.
Slow day....not many watching the news. When this news gets out, there'll be $$$ to be made!!
Dealing with Russian investment. Could be very very big!
Not sure why either. Hopefully it's a temporary thing while people digest the news and decide whether 20% of a real company is better than 100% of nothing!
REVERSE MERGER!
Many things are absolute. It's people and their sentiments that change.
Filing states they will be Common Shares.
The deficit stems from the loss to the shareholders of the value of their shares. Especially happens after a R/S. So for example, a company is monetized by issuing 1M shares at $1, then the value of those shares goes down to 0 (for example). That loss has to show up on the ledger somewhere. It's the company's deficit, but it's the shareholders holding the bag. Past shareholders have $31M less of value in their GDSI shares. Has nothing to do with today. It's not $$ that has to be paid back.
There are 29 trading days between now and the end of the year (27 full and 2 half days). GDSI says this merger should close by the end of the year....sometime within those 29 days.....and that closing will be within 10 days (business days, or trading days, I assume) of the favorable opinion letter. If the above is true, the opinion letter should come out within the next 4 weeks (by Wednesday, Dec. 16).
All that area in Texas, anywhere around Dallas is exploding with new home growth!
If you read the 10Q, you'll see that the new owners (from Rontan) will be given Common Shares for ownership. No mention is made of Preferred Shares.
That's not dilution, that's MM's rebalancing the books between themselves (for example, after selling one to another in order to bring the price down), which is why a reversal often follows a large cross trade or two.
ALL companies have balance sheets and Profit/Loss statements. Couldn't get a line of credit from the bank (or do a tax return) without one. However, private firms, such as RONTAN, are under no obligation to divulge those reports, like a public company is.
A note about how the MM's sell short: When there's not a lot of retail that wants to sell shares, the MM's step in to keep the trading smooth and liquid. For example, say the last trade was .008, and then the next retail ask isn't until .0089. That's when the MM's step in and sell at .0081, .0082, .0084, etc. Those shares are sold short, because the MM's don't have those shares, they're just selling to make the move up (or down) less volatile...more smooth. Then the same goes for the ask price, and this is where the MM's will make $$$, because what they sold at .0082, for example, they'll buy back at .0079 (and vice versa). So most of those short sales are covered fairly quickly during the day. They can get "caught" when there's a quick run up, but they usually make it back up when the price drops back down, even if it's only to regroup for the next leg up.
You are correct. Authorized share amount increased from 200M to 700M, but non issued as of yet, to my knowledge. Also, 10M "blank check" preferred shares authorized, not issued as of yet.
Different share structure, yes. But totally different ball game now with $1.2B commitment to fund whatever it takes to fulfill all orders. MONEY is no longer a problem. And how many companies can say that???
Okay soybanzai, you tell me how you think the commitment to fund up to $1.2B was made. "Here, I'll write it on this napkin!"
I think it'll go higher than $.33. I think it'll hit $.30 or $.33 and then retrace for a couple of days, and then head toward $1. Whether or not it reaches $1...... Once the sales start coming in, which they will....THAT'S when the price will cruise past $1. I...N M....Y H....O....N...E...S...T O....P....I....N....I....O....N! By the way, now that the funding commitment is in place, think of how that affects DNRG's need to dilute......
It's a "commitment," it has to be signed. They didn't just shake hands. All monies are "pursuant to signed and executed guaranteed Power Purchase Agreements (PPAs)." Like I said before, you can make all the sales you want of your great product, but without the cash to carry you through to delivery of said product and then collection (in this case, from governments, who can be notoriously slow to pay) you're dead in the water. With this financial commitment, all of DNRG's energy (pun intended) can be put into making sales! With this funding COMMITMENT, all sales are good as gold!
I see a gap which gets filled and then acceleration upward.
The 1.2B is the revolving loan commitment, per news release, and so has nothing directly to do with the market cap. That being said, this company has the product, has the creds (see news release of June 25), has the contacts (see news release of Sep. 16), and now has the virtually unlimited means by which to bring their product to market. As we all know, it's lack of access to capital which holds back even the best idea. That lack has now been taken care of. I think this news is even better than June's, which sent this to over $.30/share.
Price went from .002 to .011, a gain of .009. Using fibonacci # (my favorite) of .7, that means a retracement (all other things being equal....meaning no news of import) of .063 from the high of .011. That would mean that .0037 (.011 - .063 = .0037) is the base from which the next leg up will start. Today we hit .0037. Let's see if we don't go up from here!
Get 'em now while they're cheap!
If that $30K note was sold at an average of .003, that would only be 10M shares. I know, they get a premium; so, say, 15M shares total added to the float to pay for that note. Is my math wrong?
Can I up that to .0021?
My guess is we close today at .0017.
A reversal is beginning, that's what's going on!
Here we go.
Based on 1.85B shares of common stock, the Preferred shares they issue would have to equal 10.49B shares, with a new total of 12.3B shares. At a share price of .0002, the market cap of this new, producing company would be $2.4M. Don't know the net profit of the company being reverse merged into TALK, but it has good revenues (16-30 M, depending on what you read). I'd guess an appropriate market cap should be more like 10 - 15M (IMO). Meaning TALK should be selling for about 5-7 X what it is now.
You buy a company by issuing stock. The company being bought gets Preferred shares of TALK, equalling "85% of the common shares of the company, fully diluted." Which means what was TALK now owns 15% of the new, liquid, producing company.
15% of something is better than 100% of nothing. On paper, GROC is "buying" a productive company. In reality, the productive company is buying the shell known as GROC, and they are paying for GROC by allowing its owners (shareholders) to retain 10-15% (for example) of what will be the new share total. In return, they get control of GROC and the lion's share of the ownership, and can then raise capital for expansion through the sale of shares... (the purpose for being a public company). This is a reverse merger. Or at least one way of doing a RM. All the above is my opinion, and not meant to be exact information regarding this particular instance.
Cash on hand alone = about $ .15/share. They announce an acquisition with that $8,000,000 they have and the price skyrockets.