Adaptive Medias Inc (fka ADTM)

[236T568]

Seriously?

The warrants issued in the private placement have value. This value should be subtracted from the $5.2 million that was raised to arrive at the effective price of the common shares that were issued in the private placement.

Using the Black-Scholes model for valuating warrants and using the data provided by ADTM in the SEC filings, the effective price of the common shares issued in the private placement drops significantly to about $1.80/common share, substantially below the market price at the time.

and why is ADTM issuing significantly discounted common shares in private placements?

because that is what scam companies do!

236T568 ... Well, aren't you ...

"2. In a press release issued on Monday Sept 22, 2014, ADTM mislead the investment public by failing to mention that in addition to the 2.31 million ADTM common shares, it also issued Warrants to purchase a very significant amount of common shares (533,335), thereby reducing the effective purchase price of the 2.31 million common shares to much lower than the $2.25 per share price stated in the false and misleading press release:"

the one failing to mention that those warrants were issued with an exercise price of $3.00 which would provide the Company with an additional $1.6 million in capital if they were to be exercised ?? Consequently, issuing a total of 2.84 million shares for a total $6.8 million in capital would raise the average share price to $2.39, and NOT something, "much lower than $2.25" !!!

And did you forget to mention the 1,777,778 warrants that WEREN'T issued in connection with the 1,777,778 shares issued in exchange for the $4 million ?? Seems to be something rather significant in conjunction with the total $5.2 million capital raise, wouldn't you say ??? Certainly, not like previous funding, right ???


By the way, since you're back, would you mind replacing that old sticky note with one that's up-to-date regarding the fully diluted share count ??? Here you go ...

13,807,436 shares currently outstanding
779,046 options outstanding with an average exercise price of $2.89 ($.096 pre-split)
2,879,627 warrants outstanding with an average exercise price of $4.00 ($.133 pre-split)
__________

17,466,109 fully diluted shares

Thanks in advance.

ADTM