Bitzio, Inc. (fka BTZO)

[nobody12378]

What is that noise outside my den? What is that screeching about the value of a GERS' settlement on the BTZO board?

I see that we can thank Slashnuts for determining that Cardinal Ethanol is attempting to free-up cash for financing a legal settlement and that Cardinal Ethanol has only one pending legal proceeding -- GERS. https://investorshub.advfn.com/boards/read_msg.aspx?message_id=137103916

But we can do a lot more with that information. Read the CRDE 11/22/2017 10-K (I know a huge task for this boisterous crew to actually read something; but try it anyway). The corn oil revenue for the last few years has averaged a little over $8,000,000 per year. There are about 25 defendants, call it 20. Assume that CRDE is in the middle of this pack in terms of production; CRDE production is certainly less than ICM and PEIX. CRDE has been infringing on GERS' patents for nine years (November 2008 - now). The GERS royalty used to be 30% of revenue. So a reasonable estimate of back royalties due GERS is: 20 x 9 x $8,000,000 x 0.30; or $432,000,000! By definition, a settlement means that a substantial discount is required to close the deal. I have no idea what that is, say 50%; or $216,000,000. Let's call it $200,000,000.

We know that GERS/C&C (working on contingency)/KK chose to settle; and they are not stupid. IF they had gone through with the appeal punitive damages and back interest would have been in play. Thus it is hard to imagine that they would accept anything less than 50% of the direct damages (back royalties) So, thanks to Slash we can now up our best estimate from $150 million to $200 million.

We now can state with more certainty (not absolute certainty in any way) that the windfall appears to be at least $200 million or $10 per GERS' common share. Other possibilities including additional licensing would make the settlement even more attractive.

BUT, BUT, BUT listen carefully -- we have no idea how, if at all, GERS' common shareholders will profit from the settlement.

It is starting to snow again, and the din has subsided -- back to my den. Please keep it down.