Omni Health Inc (OMHE)

[lesgetrich]

As of May 31, OTC Markets shows 976,378,741 shares outstanding. This is the OS count as it was right after the purchase of the VitaCig shell by Omni. However, on April 3, 2017 they announced a share restructuring which apparently hasn't been completed yet...

Omni Health, Inc. Converts 62% (600 Million Common Shares) of Company Common Stock into Preferred Stock in a Capitalization Restructuring

MIAMI, FL -- (Marketwired) -- 04/03/17 -- Omni Health, Inc., (OTC PINK: OMHE) a cannabis and biotech pharmaceutical company, specializing in health and wellness products utilizing cannabis and biotech engineering, filed a Form 8K today to inform its shareholders of the restructuring of OMHE. Andrey Soloviev, the company's Chief Executive Officer and Chairman of the Board has converted 556,890,449 shares of common stock into 5,600,000 Series A Preferred Stock. In addition, 50,000,000 shares of common stock are to be converted into 5,000,000 shares of Series B Preferred Stock by several large shareholders. The actions reduce the outstanding common stock of OMHE by 62% to 368,938,292 shares of common stock.

Mr. Soloviev stated, "Recognizing the continued evolution of our anti-aging cream business, and our strategy to grow and enter into the cannabis and biotech platforms, we conducted a thorough review of our corporate structure to optimize our support of both existing and future operations." He went on to say, "This conversion of common stock to preferred stock benefits our shareholders. This allows our shareholders the ability to look into the future without concern of dilution from these shares being available to be sold into the market."

Once this restructuring is completed, it alone should significantly increase the value of our remaining shares.

Some food for thought...

Their June 13th PR announced that Omni is projecting revenues of $10 million for the current fiscal year. Two million will come from Celeb Cream. If we assume the other $8 million comes from the pharmacy operation, which had a profit margin of roughly 10% and that Celeb Cream can attain a 20% margin...

10% x $8,000,000 = $800,000

20% x $2,000,000 = $400,000

Total Earnings = $1,200,000

$1,200,000 / 975,828,741 outstanding shares = $.00123 earnings/share (EPS)

If we use a PE ratio of 40x (the average PE of Nasdaq stocks is currently 56) this translates to 40 x $.00123 = $.0492 pps

However, once the restructuring announced on 4/3/17 is completed...

$1,200,000 / 368,938,292 outstanding shares = $.00325 EPS

40 x $.00325 = $.13 pps

By this relatively conservative calculation, Omni is worth either roughly $.05 or $.13 per share depending on the share structure.