Inaccurate analysis of the data provided by OREO.
OREO's prior cap structure was 107 million shares O/S. The announced that 68 million shares are being surrendered for 3 million shares. That leaves 42 million shares of OREO O/S and some warrants above the market. This is what the current SHELL looks like. That means the shell has a market cap of $1.7 million.
OREO stated they will do a reverse split of 17:1 for these 42 million shares: leaving about 2.5 million shares with the market cap of $1.7 million.
Then you have the potential reverse merger transaction where the Avant shareholders will be issued shares such that they own 96.5% of OREO common stock and the current OREO shareholders will own 3.5% of OREO common stock. So all the cancellation did was to split up the 3.5% interest in a post reverse merger company between 42 million shares versus between 107 million (before the reverse split). Avant shareholders still get 96.5% of the ultimate shares.
With this data, you can see the "pro-forma valuation" being placed on the potential reverse merged entity. The math is simple as:
$1.7 million valuation (at cents for OROE today) / 3.5% (percent ownership this will represent post reverse merger) = $49 million.
OREO has said the share count after a reverse merger would be 70 million. Avant shareholders will own all but 2.5 million of those.
Then you might see large stock / option grants to "consultants", officers and BOD members.
As to Avant itself, it has recently valued itself under $10 million and IMHO, that's overvalued by a fair amount.
Arrayit owned 19,350,000 shares of Avant at 6/30/2014 and that was 37.28% - meaning there were 52 million shares of Avant O/S. Settlement transactions in August / September gave Arrayit 20 million newly issued shares - giving them 39,350,000 and 55% ownership of Avant.
Arrayit shareholders know the value of OvaDX more than any other people as they have dealing with the news and events of this since mid 2009, including all highly touted events in 2009, 2010, 2011, 2012, 2013 and 2014.
Arrayit has it's own life science tools business, and interest in Array Molecular and the 55% interest in Avant DX.
With all that, ARRAYIT's market cap is $5.55 million per Yahoo.
UNDERSTAND TO DIFFERENCE ??????
Arrayit shareholders are valuing the 55% interest in Avant DX at a couple million. Current OREO shareholders are valuing what might be as much as a 3.5% interest in Avant DX at $1.7 million.
So who has it correct????????[/u]
OREO penny stock traders or Arrayit shareholders who have lived every aspect of this story for over 5 years?
Based on the Arrayit side, OREO should be trading at about $0.002 cents (rough estimate). That would be a drop of about 95% from Friday's close of $0.0311.[/u]
