Is Vringo now up for sale?
Some interesting maneuvering has been going on inside Vringo these past weeks.
1) March 9, 2016 - Vringo, Inc. (VRNG), a diversified technology company, today announced the successful restructuring of all of its existing debt.. which results in a sweet deal for Iroquois and the next point:
2) Mr. Abbe, Co-founder,Principal & Managing Partner of Iroquois Capital Management, LLC joins the Board
3) March 16, 2016 - Vringo, Inc. (VRNG), a diversified technology company, today announced that H. Van Sinclair and Noel J. Spiegel have resigned from the Company`s Board of Directors. This is most likely as they are no longer needed or were against a sale.
4) March 18th, Vringo points out to potential buyers that 'As of December 31, 2015, Vringo had net operating loss ("NOL") carryforwards of approximately $123.5 million, which could be used in certain circumstances to offset Vringo`s future taxable income or otherwise payable taxes and therefore reduce its federal and state income tax liabilities.'
5) A new 'Employee share profit plan' is adopted to retain staff by giving them incentive to stay through an acquisition.
6) February 05, 2016 might have created this when VHC had the following: a jury in the United States Court for the Eastern District of Texas, Tyler Division, awarded VirnetX $625.6 million in a verdict against Apple Corporation for infringing four VirnetX patents. This is, in fact, the second time Apple has been penalized for infringing VirnetX’s patented technology.
7) Facts: VRNG needs a warchest
Iroquois wants it's money and has negotiated very favorable terms so they would want to be part of a sale
I expect this will happen quickly. My initial timeline was 4-6 months but after further review, it could happen much more quickly than that.
VRNG needs $, DTV would settle sooner and is a massive carrot to a potential buyer.
This stock won't see pre-split $50 but I expect a cash & share offer of between $11- $17/share. It's not great but Management will be taken care of and anyone with an average down of less than $10/share should do well. New buyers stand to make over 5 times their investment in an expected short period.
This is the conclusion I came to with my 25+ years in finance and investing. Do your Due Diligence, see what you come up with.
600+ patents
approx $1.5/share of cash
approx $8.2/share of tax loss carryforward
Pending DTV settlement (should be worth at least $3/share
Etc..
Remember, you saw it here first.
GLTALs
