That's not exactly correct..Before the split, there were about 1.6 billion shares between trip 7 and .001. Right now, there are about 2 billion shares at trip 1. So... we have twice the amount of shares, or less, and the price is about 7 times lower. So, it's actually cheaper now at a value of about 200k market cap at trip one with an estimated 2 billion OS. Of course, the fully diluted market cap (the way I figure my positions) is higher.
Trip one imputes a 2.5 million dollar market cap when fully diluted at 25 billion outstanding shares. Simple math. The problem is not how many shares are out, it's where they go. This could easily be a 10 bagger with ease to go from trip 1 to .001 Imputing a 25 million dollar market cap if the sales come to life and the majority of shares go to NTI to excersise the option. This is calculated with 25 billion OS. This is obtainable in a couple years. However, this is only if the shares go to NTI for the excersise of the oprion. If they use these extra 20 billion or so to sell to the public (which is the most likely option according to past actions) then yes, it's in the pooper. It's a gamble at this point, it always has been.
As far as people losing it all and not having funds to buy these shares at current price, it's just foolish for anyone to go all in such a speculative stock in its early stages. We didn't have sales in europe or asia or distribution in the prior. IF is in its infancy, as far as its relation with HCTI is concerned. Ramp up for a distributor takes years, not months. It's all just getting there.
Here is a copy and paste from the filing for those not familiar with the option. Also, it's important to note that this is a perpetual license for the whole world, not just Asia as some state. Perpetual means forever. This would be the last license, except for any other verticals that may be desired (such as the sealant option which has since expired). The reason this is important is because it would give NTI a large stake which is what many want. It would put them heavily invested and in a position to work on SP appreciation.
Again, this is speculation that they will use these shares for the option, but if they do, IMO it will be a significant tale wind for the stocks SP appreciation. If not....Dilution on a scale unprecedented even for HCTI....
Copy and paste below.... from latest annual report
Note how the Asian option is for ASIA AND the rest of the world... Not just ASIA... CLARK!!!
The Nanotech Coating Products will be sold to the coatings and adhesives market in North America, with options to sell to Europe, South America, Asia and the rest of the world.
Initial Licensing Agreement
Note 1
The terms of the Initial Licensing Agreement are as follows:
(i)
The Company was granted, effective June 12, 2010, manufacturing and sale rights (“North American Licensing Rights”) for the Coating Products on an exclusive basis for a 36-month period (“Exclusivity Period”) for the territory of North America. In consideration for the North America Licensing Rights, Nanotech paid NTI (“Licensor”) a one-time licensing fee of $500,000 and a royalty of 5% of future gross Coating Products sales.
(ii)
Within the Exclusivity Period, the Company shall have the option (“American- European Option”) to acquire perpetual and exclusive licensing rights for all of North America, South America and Europe (“Perpetual American-European Licensing Rights”). Should the Company wish to exercise the American-European Option, the Company shall issue to NTI an aggregate number of shares of common stock of the Company which shall give NTI, immediately upon such issuance of shares, a 52.5% ownership stake in the Company.
(iii)
Should the Company exercise the American-European Option, the Company shall then have an additional option to obtain perpetual and exclusive Licensing Rights for all of Asia and the rest of the world (“Asia Option”). Should the Company exercise the Asia Option, the Company shall issue to NTI an aggregate number of shares of common stock of the Company which shall give NTI, immediately upon such issuance of shares, an additional 10% ownership stake in the Company.
Note 1: The Initial Licensing Agreement was originally filed in a Current Report on Form 8-K on August 30, 2010 and the amended version (as described above) was refiled in a Current Report on Form 8-K on October 18, 2011. In the original filing the Licensing Rights included not only the Coating Products but Sealant Products as well. Also, for the “Asia” option the territory was for Asia only and later changed to Asia and the rest of the world.
