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Re: MEAD II post# 22950

Wednesday, 05/31/2017 8:11:48 AM

Wednesday, May 31, 2017 8:11:48 AM

Post# of 36382
Change can correct me if needed.

Our current market value is only 10M (marginal), so lets consider that is not an increase in market value, but a full market value.

A market value of $250M for LLBO would mean a $0.0797 in share price:

- Outstanding Shares 3,138,880,967
- Market value $250,000,000
- Share price = $250,000,000 / 3,138,880,967 = $0.0797

But remember that LLBO should own around 40% of Cyrcadia by now, so this mean that Cyrcadia would be valuated, according to the LLBO share price, at $250,000,000 + $375,000,000 (remaining 60%) = $625,000,000

Everyone here can have their own opinion on whether that valuation is realistic or overly optimistic. But I consider it possible if sales in Asia begin to show that the product is salable in large quantities.

While LLBO is part of the equation, and since it is a publicly traded company, it is LLBO that sets the real market value of Cyrcadia and not the other way around. This is my point of view, although other people calculate the valuation according to the price at which Cyrcadia is selling its shares (they are different points of view).

The price at which Cyrcadia sells its shares privately is irrelevant from my point of view, since if the LLBO price does not grow proportionally, this means that the market is not believing that private valuation. Although private investors do believe it. This is why I believe that at any given time in the near future Cyrcadia is not going to be interested in having 40% of its shares traded on the OTC. Because it affects the price at which they are valuing their shares in each new capital increase. This perception will only change if one day LLBO is valued at a reasonable price and maintains that price over time.


Disclaimer: This information is only my opinion and should not be considered as an advice or a recommendation to investors or potential investors in relation to holding, purchasing or selling securities or other financial products or instruments.