Guided Therapeutics Inc (GTHP)

[SolidRockCM]

The Deal between $GTHP and Shandong Yaohua Medical Instrument Corporation is for over $200 Millions if we read between the lines in the FORM 8-K filed to SEC on January 26, 2017.

During 2017, SMI must purchase no fewer than ten devices (with up to two devices pushed to 2018 if there is a delay in obtaining Chinese FDA approval). In the three years following Chinese FDA approval, SMI must purchase a minimum of 3,500 devices (500 in the first year, 1,000 in the second, and 2,000 in the third). As manufacturer of the devices and disposables, SMI will be obligated to sell each to the Company at costs no higher than the Company’s current costs.

Price for LuViva device is aprox. $40,000
Price for disposables is aprox. $20

3,500 devices x $40,000/each = $140 Million
3,500 devices x 1000 disposables for each device = 3.5 Million disposables
3.5 Million disposables x $20/each = $70 Million
$140 Million (from devices) + $70 Million (from disposables) = $210 Million

Now if we price the company for half of what the deal is $100 Million divided by current Shares Outstanding 570K equals $175 per share
Short term this stock can go to $30 with ease!