From the looks of things, the math is rather simple (and the deal potentially very lucrative).
500 million shs for 100,000 tons of sugar (first month's allocation)
100,000 tons x 2,000 lbs per ton = 200 million pounds of sugar
500 million shs for 200 million pounds = 2.5 shares per pound
current share price of .0005 x 2.5 = .00125 per pound
For that share exchange, we own 20% of the profit generated from the COOP
So if the profit is more than .00625 per pound (5 x .00125), we have earned back 100% of the cost (at our current share price) of this JV on just the first 100,000 tons of sugar (first month's allocation). That bears repeating. With an assumption of slightly more than one half of one penny of profit per pound, PSRU has an ROI (return on investment) of 100% based upon the very first month's shipment of this sugar commodity. Everything sold at that level of profit, after the first month's shipment, exceeds the total value of the upfront PSRU investment (based upon the current share price).
Excuse the pun, but that sounds like a 'sweet' deal to me.
As always, simply my opinion.
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Vero Beach, FL - October 08, 2014 - InvestorsHub NewsWire - PureSpectrum, Inc. (OTC Pink: PSRU), Chairman of the Board and Chief Executive Officer, Gregory F. Gustin, has announced that the Company entered a Joint Venture Agreement (“JVA”) with Central Sun Ukraine LLC (“CSU”).
“Central Sun Ukraine is a multi-disciplined organization based in Kiev, Ukraine. Amongst its many ‘assets’ is that it is an approved ‘Foreign Investment Company’. Such approval allows for investments into Ukraine that might otherwise be restricted.” said Mr. Gustin, who is also part owner and President of CSU.
In addition, CSU has recently established its Commodities SUGAR Division. This week CSU will countersign an offer for the exclusive allocation from three government sugar refineries in Ukraine. CSU’s allocation will be 100,000 metric tons per month. The first shipments are scheduled within thirty days, with plans to reach the full allocation with ninety days. In exchange for 500,000,000 common shares of PRSU Stock, CSU will remit 20% of Sugar COOP Profits to PRSU. Using current market pricing, for both PRSU shares and refined beet sugar, PRSU anticipates a significant return on its investment.
Mr. Gustin further states, “Not only will this JVA generate our first revenues with positive cash flow, it provides our firm a formal introduction into the global market of food grade commodities.”
PSRU
