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https://www.otcmarkets.com/stock/SOLI/security
In the pinned message
*checks notes*
A buyout at the same revenue multiple TDOC just paid would be about half the current SOLI share price.
Some might argue paying 13x revenue is assuming some growth
I love that, using the most optimistic revenue multiple from the (still pinned) optimistic forecast thread, the currently justified share price for SOLI is... about $0.25.
Literally no one wants shares at 0.05 because those PIPE convertibles can hit now with the uplist. If they convert at 0.05 they get more shares than are currently outstanding.
Flood email is nice but nothing more helpful than the last 8-K. Management needs to understand that current actions have the appearance of deliberately holding down the share price until convertibles hit next month, which would be disastrous to current shareholders. This is how class-action lawsuits happen.
Don't really see how this is "manipulation". If Management wants to build trust while being a grey sheet they can't miss deadlines they set for themselves this badly. Stock price reflects the trust being burned right now.
Yeah if they can't get the Q out in the next month the potential dilution from the F&F offering starts getting really scary.
"Doing it right" would have involved seeing financials by now.
You would hope a tele-medicine company had good phone lines lol
Yeah, who knows if they're true believers or not. Really hope we get the 10-Q soon I'm fascinated to see where they're at.
That's what it appears. But if those guys convert and instantly try to sell that is $3.2m worth of shares being sold very close together. Not nearly as painful around $1/share as it would be around $0.20/share.
Agreed, it would be devastating for shareholders if it happened. Wouldn't expect Management to want that, unless Flood/Scott and co hold most of the convertibles.
Yes, the friends and family would be very happy if it stays this low until October. Getting in with a stock price around $0.20 would give them over 20% of the company.
So in TDOC's case they trade 8-10x revenue. So if revenue was below 4m annualized would you sell at these levels?
Curiosity question: how low would revenue/earnings have to be for any of the "true believers" here to consider selling? Honestly curious.
That is (finally) the right question. Glad we'll have answers by Friday.
Sorry, I thought this was participating.
I didn't post under other aliases, I first posted on the 27th. Sorry I know it's the internet there's no way to prove that.
What spin? I'm reading the public filings and asking questions directly from the filings.
I know the underlying business is real. I don't think it's worthless. But it's really hard to take a lot of the arguments on here at face value. Why would these guys need the new structure to get paid well if they were already a profitable business? Were they really not able to find someone to give them more compensation up front for this business?
Those are real questions, not "spin".
Sure. It's either bad for old owners because they got robbed on the sale or bad for current shareholders because what they own is worth close to the $2m that the owners sold it for.
Yes, I've watched that. If they achieved the exponential growth he described I would think they could have found someone to take them public on more favorable terms. I think the video also highlights some concerns, maybe you disagree with me:
1. Budhrani didn't continue with the business per filings, so he's exhibit 1a of who got screwed the most by this unless he received compensation that hasn't yet been disclosed.
2. He was looking for a 1.5m investment in this video. Based on the ownership structure in the purchase agreement there weren't any institutional investors, so why did they decide to pass on this great opportunity?
Sure, they saved a lot by going public this way, but saving even hundreds of thousands of dollars doesn't explain why the LOI price would drop 90%. Even more importantly, initially they were going to receive the stock at close, now they get it in October. Even at current prices that's less than 2% ownership. Would have been around 50% when the deal closed. Really raw deal for these guys.
Only 2 of the six equity holders stayed with the business so the employment agreements mentioned by someone else don't really explain this either. And if they got significant interest in the subsidiary that just means common holders own less, not really a good argument for a higher share price.
That's what I'm having trouble understanding and don't feel has been addressed by posters here.
When the 8K announced a 90% drop in the offer price for Careclix was there any explanation? NO
Still no explanations on this board for why prior management would sell a profitable company or one producing meaningful revenue for $2m when the pre-diligence price was $20m.
Sigh. $3m form D, able to buy shares at 50% = $6m dilution.
Enjoy the mutual self-congratulation, I'm happy this has worked out for you all.
Thanks for the responses all.
Still have a hard time believing a seller would voluntarily give up $10s of millions of dollars just to maintain operational control and not deal with the hassle of an IPO. You'd demand a much larger equity stake too, no? And if they're just being granted the equity after the fact then you're just getting more dilution (options, preferred shares, etc). Just like there's up to $6m of dilution out there from the convertible note offering. What's the alternative, Scott doesn't hold full ownership and Korangy still owns part of the subsidiary? Then you have to assign SOLI a higher value to justify $100m market cap.
RE the Other Acquisition: Seeing as SOLI doesn't have a ton of cash, they're going to need to do another raise or issue more equity to pull this off. Either way it's dilution. They could get a good deal and plenty of synergies, sure, but I wouldn't expect the next company to allow itself to be swindled like Careclix. Definitely going to ask for more up front, right?
RE DTGoody - "Management wasn't Dumb instead they are Geniuses as they are going to be receiving pay and stock options. You see these Guys are going to become Billionaires off of this Deal once SOLI up list" - this is why I have a hard time taking this stuff completely seriously. For Mr. Scott to become a billionaire, the stock needs to go to $20/share based on his current ownership and no more dilution, for anyone else it need to go up a heck of a lot more than that. If Korangy has a what, a 5% stake, you need a $200 share price. Mr. Scott is the only one becoming a billionaire unless this thing goes to a much higher market cap than Teledoc.
RE "the acquisition has already closed, so the time for asking why has passed." - the time for asking why is absolutely not over until you understand the underlying business. You don't even know what their revenue has been, it's conjecture. Maybe part of the reason for the low price is the business isn't doing as well as you think? That's a 100% valid question to still be asking.
I guess you're not understanding my question. I"m not saying I think SOLI is worth $1m, I'm saying, that three months ago, Careclix WAS sold for a purchase price of $2m. Facts are stubborn things.
I'm not short, I'm not long, and I understand you've already made a killing on this stock and good on you. I passed up a chance to get in at $0.27 so yeah I'm kicking myself for that.
I still don't understand how the old ownership could be so dumb as to sell a business that is now being valued at 50x what they got for it. They really couldn't find anyone else to give them a better deal? That's like selling someone your new Tesla for $500 because they were the only person in front of you offering to buy it.
I understand you have a lot of idiots to deal with on here, but this is not an idiotic question.
Sorry, need you to spell it out for me because there's no other mention in the filing of other compensation for KB...
"In April, 2019, the Company completed the acquisition of certain assets of KB Medical Systems, LLC, an unaffiliated company for a total of $2,000,000, of which $1,000,000 was paid in cash at closing and the balance of which will be paid in the future in shares of unregistered common stock of the Company based on the five day trailing average closing market price of the common stock on the date which is six months after closing. KB Medical Systems, LLC will remain in existence after closing and will continue its separate business operations at its original offices in Washington, DC. The assets acquired, which were acquired free of any and all liabilities of KB Medical Systems, LLC, have been contributed by the Company to a newly formed Virginia subsidiary corporation, CareClix, Inc., incorporated for that purpose. CareClix, Inc. has commenced new operations at the offices of the Company in Virginia and only two former employees of KB Medical Systems, Inc. have been employed by CareClix, Inc."
They're getting $1m worth of stock based on the trailing five day average in October 2019 if I read that right, right now that's about 1% ownership. How is that not paying $2m for the business?
Two questions for followers of the stock
1. Why do you feel this company has significant upside remaining, when the previous owner just agreed to sell for $2m? You would have to be a monumental idiot to sell something for 1/50th of its current value, let alone the stated upside I see on this board.
2. I'm reading that a takeout by Teledoc/someone else is a possibility above these levels. TDOC is about 9x prior year revenue right now. Is there any indication Careclix is doing >10m revenue? That would be necessary to get to a similar valuation.
Thanks for your time and sorry if these questions have been answered in previous posts I missed.