Ted- BM and DJ have this incentive option regarding them securing financing of $15M:
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The agreement also provides that within 30 days after the completion of an equity financing, the gross proceeds of which to the Company are not less than $15,000,000, the Company will grant Dr. McGann an incentive stock option to purchase that number of shares of common stock of the Company which, together with all other option and equity awards previously issued by the Company, will equal approximately 1% of the Company’s fully diluted equity.
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The option price sets at the time of closing, BOD have to approve. The 1% amount of shares set against the # of shares outstanding at the time of closing. This predicts a strike price/#shares shortly after a conversion at a low strike price and higher share count. Not saying anyone is working toward that, but its usually how things play out.
IGH- setting a price, in whole, is premature at this time as the products that guarantee a fair price are NOT fully developed. Further, sales in the future for the B-220 are not fully visible, all of which deliver a poor offer ( IMO). You could use a trailing gross sales # or a forward sales number Xs anywhere from 2-6 to get a dollar amount. Of course, if competing interest is high and the potential buyers think they can drive much higher sales out of ISC's current products and are will ing to risk capital on developmental products and the IP, then who knows.
I'll say anywhere from 80M to 450M-- its that big of spread. Share count, 170M if the convertible debt/interest is converted. Plus or minus 15M shares.
I think in a year, the value of ISC could be 3 to 5 times what it is today. I am totally against anything under 250M$+ debt paid out.
