APT MotoVox Group Inc. (MTVX)

[bullethole27]

Yes the 5 days is based on deductive reasoning. The terms say that they will take the lowest 5 day average price and use that to calculate the total number of shares they get. So it is a profit maximizing equation we are dealing with. Let me setup a mathematical formula which might be helpful for some and annoying to others.

Shares earned

X= (2,300,000*1.07)/((Y*80%)-.002)
Where X is the number of shares Iron gets and Y is the lowest 5 day WVAP average until we trade $50M worth of shares (approx. 35 trading days give or take).

Profit maximization occurs by receiving the largest number of shares and selling them at the highest price. Obviously to receive more shares they must ensure that the 5 day WVAP is as low as possible. They can lower the PPS buy dumping a bunch of shares. However as the PPS goes lower they received less money for their shares. The formula to maximize the profit by balancing keeping the price down and obtaining a good price for your shares is complicated. You need to know at what point driving the price down further to get additional shares becomes less profitable than waiting for the PPS to increase before selling remaining shares. Determining the appropriate equation would take a lot of knowledge or assumptions about the levels of resistance to both price increases and decreases from all the various factors involved. Basically if I could figure it out I wouldn’t be here right now I would be solving world hunger or some such.

Generally though we can make some logical conclusions. Iron would benefit from dumping the majority of their shares on day 1 and 2 when the prices are higher relative to where they will be on day 3 and 4 after the dilution has begun. The first two days of dumping serve them two ways, it gives them a higher price on their shares in the short term and it drives the price down which earns them more shares. Now as day 3 and 4 arrive and the share price goes lower the equation begins to balance out. This is because they only have a limited number of shares to work with (435M) and the market demand begins to increase as the price goes down (there is increased resistance giving them less bang for their buck).

In other words when the price was .0182 they might have needed to sell 20M to drop it by .002 and earn themselves 29M more shares. However once the price reaches the .013 range buying pressure picks up and now it might take 60M to drop it by .002. That’s 60M shares they could hang onto and sell at a higher price later once the financials come out. At some point the most profitable move becomes holding shares and waiting for a higher price to return before selling. They also want to minimize their risk of selling too many shares and being forced to buy back 100’s of millions of shares.

Long story short there’s no way to guarantee that they’re done but basic profit maximization strategy suggests that they most likely are.