Here's my take at answering your question....for what it's worth.
After the R/S:
A/S will be 125,000,000
O/S will be 113,411,650 (approx.)
In the 8-K that came out on Friday, it stated that the company would have to keep common shares available in case the note matured and needed to be paid off on March 31, 2019. it said that in the case of a R/S, the amount would need to be equal to 50,000,000 shares. Obviously the company has called it a 4:1 R/S, so that would mean that they'd need to have 12,500,000 common shares available at all times.
As you can see from the A/S and O/S numbers after the R/S, there wouldn't quite be enough shares available.
So what I think has been happening, is that the company/CEO have been making huge buys this past week, especially Friday and will possibly this coming week also. There were some huge buys hitting the ask all day long which got my attention to this. (When insiders buy shares they are not allowed to hit the bid amount, they have to buy on the ask).
So I expect a Form 4 to be filed over the next few weeks with a large share total amount that was bought up by the company. I expect some of it will be used to make sure there is a big enough share buffer to accommodate the new note that was agreed to. So not only will that be taken care of, but that gives the company an even higher % of shares owned. They'd be idiots if they weren't buying at these prices!
So anyway, on to your valuation/price target.....
The first 3 quarters have been $17.79M, $22.43M and $19.55M. So lets just go chalk here and say that the Q4 is the exact average of those first 3Q's....which is $19.925M.
That gives us a 2016 full year revenue of $79.701M...Lets just say $80M to make it easier.
Using the current O/S at a 4:1 R/S, here are your price targets based on whichever valuation you see fit....
3x revenue $2.116 after R/S, OR .52 at current O/S before R/S
4x revenue $2.821 after R/S, OR .71 at current O/S before R/S
5x revenue $3.527 after R/S, OR .88 at current O/S before R/S
So pre R/S your target range is .52-.88
After R/S your target range is $2.11-$3.53
