Iconic’s value is direct relation to Bellissima because it is the only real asset, the PPS value is currently looking at 25% of Bellissima’s value because we currently only own 51% and Rich has those Pref Ds that convert to insure he owns half the OS.
PPS = FMV / fully diluted shares post all conversions. FMV for Bellissima would typically range from 2X to 5X (possible to be higher as in when Clooney sold his Tequila company for 22X - just not normal, a rarity for sure) annual Sales. Let’s use Richie’s figure in Dec PR of $3.3M Sales for 2017.
5 X $3.3M is $16.5M (realistic buyout figure).
Shares out are 1.13B, which should include all but the debtor shares which started at 613M. We don’t know have many have hit the OS, but we do know it’ll take a couple years to churn through those at 10% max on any trading day’s volume. So let’s guess at 500M left.
1.13B + .500B is 1.63B (this the 1.6B often brought up here). That is often called the fully diluted OS as of now. But if a buyout of $16.5M were to occur, Rich would immediately (likely, but doesn’t have to) issue the debtor shares, then convert his Pref Ds which would double the Fully diluted OS to 3.26B.
Ok, now to factor in the 51% ownership ICNB has. That means we would get 51% of $16.5M or $8.4M.
$8.4M / 3.26B = a distribution PPS of $.0026. We are trading above that.
In any case, to answer your question...if we owned all of Bellissima, $16.5M /3.26B would be twice the PPS as above or $.0052.
Now suppose some outfit fell in love with Bellissima like happened to Clooney and offered 22X, then PPS would be $.023. But that does assume that Rich gives the other 49% over to Iconic. He could also double the sharecount to pay for it. Now with Pref Ds converted against 3.26B doubled, the PPS drops in half.
Remember that Rich doesn’t have to distribute the money on a buyout of Bellissima whether 51% or 100% owned because he has 2/3 voting rights and the buyout is not of Iconic, but rather of a separate company called Bellissima that though owned by Iconic, is controlled by Rich. This has a lot of investors scared.
Anyway, just my take.
"A man sees in the world what he carries in his heart" ** Johann Wolfgang Von Goethe
"Never does a man portray his own character more vividly, than in his manner of portraying another" -- Richter
