Propanc Biopharma Inc (PPCB)

[SeatonBM]

Here's some dilution info and indepth math...

Per their 8k filed 9/4/2018/ period ending 8/28/2018 they had 38,324,191 shares outstanding, 400,000,000 shares authorized... And I quote from the 8k linked here:

https://www.otcmarkets.com/filing/html?id=12948787&guid=6SKEU6-asmUCjth

c. Capitalization . As of the date hereof, the authorized common stock of the Company consists of 400,000,000 authorized shares of Common Stock, $0.001 par value per share, of which 38,324,191 shares are issued and outstanding; and 74,125,874 shares are reserved for issuance upon conversion of the Note. All of such outstanding shares of capital stock are, or upon issuance will be, duly authorized, validly issued, fully paid and non-assessable.

Note... Sounds like they were planning to dilute by 74,125,874 shares via that statement... No? Reason being sounds like a note conversion - IE paying debt off... Their last 10q quarterly report filed 5/17/2018 for period ending 3/31/2018 shows $4,514,921 in Convertible notes and related accrued interest, net of discounts and premiums... However if you take that $4,514,921 and divide it by the 74,125,874 million shares reserved for issuance upon conversion of the note, you end up with an average share price value of $0.0609/ share... Also seems to me their next quarterly or annual report is due soon... The last one was for period ending 3/31/2018, so then doesn't the next quarter end 6/30/2018... Plus filing time...

Anyways, 38,324,191 + 74,125,874 = 112,450,065 shares outstanding...

Buuut wait, their next 8k, filed yesterday/ period ending yesterday (9/7/2018) states the shares outstanding are 124.244 million per their presentation slide included at the bottom in the 8k (there otherwise is no other mention of shares elsewhere in the document)...

This 8k is found here:

https://www.otcmarkets.com/filing/html?id=12955048&guid=6SKEU6-asmUCjth


https://content.edgar-online.com/edgar_conv_img/2018/09/07/0001493152-18-012996_IMAGE_031.JPG

Not sure what to make of the difference of 11.8 million shares I can't otherwise account for thus far, but never the less... More on this later down below... Also note the "as of 9/5/2018"...

The closing price September 4th, 2018 was $0.1820, thus the market cap of this company at that time - previous to the release of the 1st 8k above (again filed 9/4/2018 after close I believe) was THOUGHT TO BE (IE using the 38,324,191 outstanding shares number before realization of the dilution) $6,975,002.76...

Now with the admitted dilution, take that market cap of $6,975,002.76 and divide it by the newly realized shares outstanding count of 124.244 million, and you get a share price value of $0.0561 per share... And I'd probably call that the mean value... Remember this ran up to $0.2888, so that market cap under the old shares outstanding count of 38,324,191 was $11,068,026.36, divided by the new shares outstanding count of 124.244 million leaves a high end share value of $0.0891...

The more important and captivating thing however is that the 2nd 8k, the one that mentioned the dilution to come, though filed on 9/4/2018, was for period ending 8/28/2018... Hmmm.... Just about the EXACT same time the stock began to run...

Now looking forward, this picture from their presentation might gift you some ideas as to what this stock might do going forward if you can read between the lines - and see any worth while content... Keeping in mind by the rumor, sell the news...


https://content.edgar-online.com/edgar_conv_img/2018/09/07/0001493152-18-012996_IMAGE_027.JPG

There presentation also shows they are seeking $4,000,000...


https://content.edgar-online.com/edgar_conv_img/2018/09/07/0001493152-18-012996_IMAGE_028.JPG

And when I think about this... So what's interesting to me is... IF you take $4,000,000 they're seeking and divide it by the mystery 11.8 million unaccounted for shares mentioned above, you get a share price of $0.3390... Not to far from the $0.2888 peak since all this began - maybe they settled for less, maybe they didn't need exactly $4,000,000, maybe they didn't raise the whole $4,000,000 and will continue to dilute or already have diluted more since the reporting of 124.244 million in that presentation on the 9/7/2018 8k (the slide states that was as 9/5/2018)... Maybe they have other plans for raising the rest of the money... Other investors (was that not the point of the presentation to begin with?), or what have you... Who knows... But it is all pretty interesting to say the least...

Also worth pointing out... Between 9/4/2018 when the 1st 8k was filed for period ending 8/28/2018 the shares outstanding was only expected to be no more than 112,450,065... It wasn't until the release of the 2nd 8k at the close on 9/7/2018 that we see that as of 9/5/2018 the shares outstanding was actually 124.244 million... That 11.8 million share difference was not known to traders like you or I between 9/4/2018 and 9/7/2018... This stock so happened to also peak around that time frame... Where again, I suspect it was possible they made an effort to raie their $4,000,000 and would have needed to do so at roughly $0.3390 per share to capture $4,000,000 in only 11.8 million shares (keep in mind I am also using rough numbers here since they rounded the share count to 124.244 million, and I am rounding the unaccounted for shares to 11.8 million in doing the math with rounded numbers, etc.)...

Also worth mentioning they didn't get all 11.8 million shares at $0.2888, we were only there momentarily... Only so many shares got traded at that price... Probably very few... So they sold those 11.8 million shares for less... Which means they might also be diluting more if I am correct in any of this theory...

That said, this also means the dilution could soon be coming to an end... So was this a pump and dump to raise money? or was this just the beginning of something that was just dumped on that may again rebound??? It is hard to deny dilution occurred this last week, I watched the level 2, it was painful to see a lot of hidden share block selling from various market makers only showing 10,000 shares or so on the ASK, but then an ASK wack for hundreds of thousands if not millions of shares wouldn't budge the price above the 10,000 share block on the ASK... It was obvious there were numerous shares hidden... Usually a sign of dilution... Will they let this breath?

Worth also noting that I show since 8/27/2018 this stock traded over 315,863,900 shares or over 2 almost 3 times the shares outstanding, never mind the float itself... Whatever it is....